Independence Impaired: An Analysis of Proposed Changes in Assurance Services and the Future Impact on the Accounting Profession
MetadataShow full item record
This paper analyzes the auditor independence issues debated during the Accounting Wars, and their applicability to present and future impacts stemming from the Enron fallout. This study documents SEC proposed independence changes and the resulting conflicts between Big Five accounting firms and the SEe. Past and current proposals are examined separately. Relationships or similarities are noted. Based on the progression of past and present proposals and mandates, a determination of future changes is made. A strong relationship exists between the past and present proposals which indicates substantial changes within financial reporting, the elimination of consulting services, and the creation of new oversight boards. The cause and effect of each proposed change is discussed. From this analysis, accounting firms with SEC registrant clients can generate a realistic picture of the future of accounting.