SEC Planning For Collapse of Big 4 Accounting Firm
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The Securities and Exchange Commission (SEC) is drawing up contingency plans for the failure of a Big 4 accounting firm. The move is in the wake of the Supreme Court overturning the conviction of Arthur Andersen. KPMG is currently in the sights of the SEC because of allegedly peddling illegal tax shelters. Moves considered by the SEC include making it easier for firms to switch auditors. Measures would be needed to help companies find new auditors. No firm plans have been approved, according to the Wall Street Journal who broke the story. The person who would have the most say is SEC Chairman nominee Christopher Cox. A failure of a huge accounting firm would have repercussions for auditing, as the Big 4, KPMG, Deloitte & Touche LLP, Ernst & Young LLP and Price Waterhouse LLP between audit 78% of U.S. public companies.
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