Perhaps its poetic justice or maybe a bit ironic, that on the same day that President Bush signs the historic public accounting oversight and corporate governance reform legislation, IBM announces that it is acquiring PricewaterhouseCoopers' consulting unit for $3.5 billion in cash and stock. And since everything comes in threes, add the July 30th SEC ruling by SEC Chief Accountant Robert Herdman, which will allow IBM to keep PwC as its auditor.
Put them all together and what do you get? You have a Big Five--sorry Big Four firm--divesting itself of a consulting unit that does the exact non-audit activities prohibited under the new legislation. Of course, the sale is to an audit client of the firm.
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