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NSF officials said that for their audits, this was a low score.
A survey by the FEI, an association of top financial executives, found that companies paid an average of $2.4m more for their audits last year than they had anticipated (and far more than the statute's designers had envisaged).
The immediate litigation conflict regarding the Bear Stearns EMC mortgages Deloitte is reviewing at JPMorgan Chase resolved itself when Deloitte settled the earlier litigation against them for their audits of Bear Stearns.
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Mr. Levitt has said that the firms' consulting work poses a potential conflict of interest for their audit work.
The S.E.C. had sought to bar auditing firms from performing information technology consulting -- like designing and installing large computer systems -- for their audit clients.
Earlier in the year, Congress was breathing fire about audit reform, including tougher regulation of accountants and banning firms from doing consulting work for their audit clients.
Indeed, federal regulators are hammering out tough new limits on accounting firms' ability to perform lucrative consulting work for their audit clients.
Sometime before his term ends, the S.E.C. is likely to approve rules that will limit the amount of consulting services auditors can provide for their audit clients.
"Congress is considering banning auditors from performing various nonaudit services, including tax, for their audit clients," said the alert, which also noted other "auditor independence" proposals under consideration.
In 2000, the big five fought a concerted and successful effort against a ban on auditors performing other work for their audit clients.
The institute's leadership, with the support of three of the Big Five accounting firms, has bitterly opposed the proposed S.E.C. rule, which would limit the consulting work that auditors can perform for their audit clients.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com