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SEC Accountant Calls for Scrutiny of Auditor Consulting Deals

Oct. 26, 2021, 9:45 PM

Accounting firms should forecast which consulting arrangements could threaten the independence of their audit teams in the future, the SEC’s top accountant said Tuesday, building on previous remarks on the strict U.S. conflict of interest rules.

“Entering into significant, multi-year non-audit service contracts or business relationship arrangements with non-audit clients can impact the auditor’s ability to remain independent of its existing audit clients in certain future circumstances,” Paul Munter, chief accountant at the Securities and Exchange Commission, said in a staff statement posted on the agency’s website.

  • Munter warned two weeks ago that the firms’ aggressive growth strategies could ...