Multidisciplinary roles of the accounting firms with respect to their audit clients also raise the question of impaired independence, the result of increasing numbers of management consulting services to these same clients. The prospects of a more lucrative job offer to a current auditor by their client also poses an additional risk of decreased independence. The recent charges against PricewaterhouseCoopers by the SEC are indicative that such behavior will not be tolerated. Although the potential for problems exists and violations do occur, it appears to be the general consensus of most professionals that the integrity of the industry as a whole is still maintained. In light of recent events, measures have been taken to increase the level of assurance of auditor independence.
Audit committees are an additional means of maintaining independence.
The creation of the Independence Standards Board is probably the most forward-looking measure. Aside from providing consulting services in regard to independence inquiries, it will be their difficult and formidable task to revise the current rules of independence which date back to 1933, to reflect the vast changes in business relationships and complexities associated with consolidation and global expansion. With the increasing complexities comes the increasing reliance of creditors and investors upon the external auditor and their professional opinion of the financial statements they audit. There is nothing that can damage that reliance more than impaired independence. Despite the pressures of today's business world and those associated with the profession of accounting, the external auditor must maintain the highest level of independence in every audit engagement they participate in.