(February 12 – 12:30 ET) – The Financial Times is reporting that the Big Five accounting/consulting firms will intensify their self-regulation to prevent the creation of a statutory watchdog in the United States.

The paper says the firms and the Securities and Exchange Commission have been sparring over the self-regulation provided by the Public Oversight Board. FT reports that the firms have agreed to boost the POB’s budget staffing and oversight powers to avoid the creation of an SRO similar the National Association of Securities Dealers, or the Investment Dealers Association. The firms hope that this move will keep the SEC at bay.

The firms and the SEC sparred last year over the rules to enhance the independence of auditors and avoid conflicts of interest. The FT story cites “sources close to the SEC” suggesting that it will unveil several cases against the big firms in the coming weeks arising from its recent investigations into audit independence.
-IE Staff