The Public Company Accounting Oversight Board, in its December 7, 2004 press release, succinctly described an upcoming meeting in one sentence: "The Public Company Accounting Oversight Board has scheduled an open meeting for 10 a.m. Tuesday, Dec. 14, to consider whether to propose rules concerning auditor independence and tax services for audit clients."
That statement is rather misleading. I don't think the PCAOB is considering whether it will propose rules. I just think it is considering how far it wants to go. The amount of tax advice given by auditors to its public company clients is well known. The auditors don't want to give up that revenue and would prefer any restrictions on providing tax advice to audit clients to be very limited. The PCAOB just might be trying to gauge any potential backlash from imposition of such rules.
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