New York (March 12, 2002) - Paul Volcker, the former chairman of the Federal Reserve, who now heads the oversight board for embattled Big Five firm Andersen, called for the firm to separate its auditing and consulting services.
At a news conference here, Volcker's three-member Independent Oversight Board, said it would also reformat Andersen's internal structure to centralize authority over auditing decisions.
Volcker said once the separation was complete, there would be no partner overlaps or revenue sharing between the auditing and consulting units. Volcker also called for auditing partners to be rotated every five years or less.
Volcker was appointed Feb. 3, to enact sweeping reform to Andersen after the fallout from its audit of failed energy provider Enron Corp.
However, rumors continue to swirl regarding a sale of the firm to one of its Big Five rivals - most notably Deloitte Touche Tohmatsu and PricewaterhouseCoopers.
- Electronic Accountant Newswire staff
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access