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
