We believe that the proposal would unnecessarily force many clients to dismiss CPA firms with which they are otherwise satisfied in order to meet the new regulatory. It is our belief that non-attest services do not impair auditor independence. In fact, the provision of these services frequently enhances the auditors' ability to understand the business of the clients and the industry in which they operate. This then leads to improved audit effectiveness. In addition, the proposal could affect the way in which firm membership associations serve their members.
Firms join associations to improve their operations.
This is frequently accomplished through networking, joint activities, and shared knowledge. We believe that this proposal may result in impairment of the firms' ability to participate in associations like this in the future. Consequently, this would have a detrimental effect on the viability of these firms and indeed, on the profession itself. It is essential to consider carefully a proposal that would disrupt effective relationships between audit firms and their clients. This is especially true in view of the findings of a new survey by the Independence Standards Board, which revealed a majority of corporate executives are confident or their auditors' independence and are satisfied with the overall quality of financial reporting.