Limiting the Scope of Accounting Firms’ Consulting

What are the risks and opportunities for accounting firms as they expand their consulting activities?
Barry Salzberg  | Spring 2016
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In 2000 the US Securities and Exchange Commission (SEC) made a proposal to limit the amount of consulting work that accounting firms could perform for their audit clients, and in 2002 the Sarbanes-Oxley Act narrowed the addressable market for accounting firms’ consulting units. This note provides an overview of the historical and legislative context for accounting firms as they have expanded their consulting activities—and the different approaches accounting firms have taken in response to legislation aimed at limiting their consulting roles.

Case ID: 160417

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