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AUD | Has the SEC Awakened a Sleeping...
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Howard B. Levy, CPA
For over 50 years, observers have questioned whether auditors who provide consulting or other nonattest services to their clients can be independent, and regulators continue to grapple with the issue. (See H. B. Levy, “Unsolved Problems in Auditing: A Half-Century Retrospective and Update,” The CPA Journal, February 2016.) In addition, all auditors know that certain family relationships with a key client employee will impair their independence. But when has anyone ever challenged auditor independence based on an intimate or other close nonfamilial relationship?
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