The European Commission has issued its first major recommendations on auditors' independence since t...
The European Commission has issued its first major recommendations on auditors' independence since the Enron scandal brought down the once mighty Arthur Andersen. The EC's "Statutory auditors' independence in the EU" recommendations specifically urge member states to prohibit auditors from carrying out statutory audits where there are any other financial or business links between the auditor and the client. The Enron case brought up two specific issues, the EC says, which were the sale of additional services to clients being audited, and the issue of auditors being "employed" by...
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