PCAOB New Rules—Opportunities for CPAs

Source: CPA Insider

New rules by the Public Company Accounting Oversight Board may provide tax service opportunities for accountants.

The PCAOB adopted rules, expected to take effect December 31, 2005, that prohibit auditors of public companies from promoting aggressive tax transactions (i.e., those without at least a 50 percent probability of being allowed, or with tax avoidance as the primary objective). The rules also prohibit auditors from providing tax services to financial executives and their families.

CPA Insider “expects many audit committees would be reluctant to approve an auditor to do any tax work for the public company.”

For details, see www.pcaobus.org/Rules/Rulemaking_Docket.aspx.

From CPA Insider, October 3, 2005. For the complete article, click on the following link: https://www.cpa2biz.com/News/Selected+Features/PCAOB+in+High+Gear.htm.