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October 2020 » Now Is the Time to Operationally...
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Steven M. Mintz, PhD, CPA
In BriefPerforming certain nonaudit services for audit clients can impair independence. Misrepresenting nonaudit services as immaterial and mischaracterizing them as audit services obscures the conflicts of interest that may occur when both services are performed for an audit client. In the United Kingdom, regulators are moving towards separating audit businesses operationally. The SEC should study the issue to determine how to implement a similar split in the United States. Nothing short of this remedy is sufficient to protect the public interest.
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