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The Public Company Accounting Oversight Board (PCAOB), has as expected, approved a proposal to ban auditors from selling aggressive tax shelters to audit clients.

Aggressive tax shelters was once a lucrative business for accounting firms. However, even before the vote, the Big 4 had all withdrawn from the business.

KPMG is even the subject of a criminal investigation by the Justice Department. The firm is cooperating fully with the investigation.

"This will keep auditors out of aggressive tax work that has so damaged investor confidence, the panel's chairman, William J. McDonough, said. "

Auditors will, however be able to continue with routine tax return preparation, tax compliance and tax planning.

Sarbanes-Oxley and material weaknesses also featured. A new standard was agreed for how an auditor should handle a request for an opinion on whether a previously reported flaw in its internal control still exists.

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Keywords

PCAOB

Public Company Accounting Oversight Board

Big 4

KPMG

auditing

tax planning

tax return

Sarbanes-Oxley and material weakness

auditor

auditing and material weakness

tax shelter