Watered-down rule might still wet small CPAs.

Investment News, November, 2000 by O'Brien, Sarah

Auditor independence may move into states For small accounting firms, the waiting game begins. Securities regulators on Wednesday adopted a rule to strengthen auditor independence that has virtually no effect on small accounting shops. But some are wondering how long the rule's provisions will take to reach them -- a possibility if state regulators follow suit.

The Securities and Exchange Commission approved the controversial measure, called the auditor independence rule, in a unanimous vote after reaching an 11th-hour compromise with major accounting firms. The rule aims to prevent conflicts of interest that could compromise the integrity of companies' financial statements (InvestmentNews, Oct. 2). The rule affects only firms that...

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