One woman who was attracted was Sharon Kurtz, now a manager of internal audit services for the firm.
It will let firms continue to offer computer consulting and internal audit services to these clients under certain conditions -- a partial concession to the accounting industry.
Separately, reports that four of the five major accounting firms, including Arthur Andersen, may be moving away from offering certain consulting and internal audit services to the companies they audit is a welcome development.
PricewaterhouseCoopers went the furthest of the large accounting firms, stating that in addition to discontinuing the practice of providing internal audit services and technology consulting services to companies that it audits, it would disclose more information about its business, compensation and audits to investors and clients even though it is not publicly traded.
Accounting professors have explained to me that rules limiting the ability of accounting firms to provide internal auditing services to a client (and thereby prepare the same books that they later purport to audit independently) are pointless, because accountants would never risk their reputation by acting improperly.
An internal audit of services in October 2008 revealed that: Over 1/3 (153/407) of pre-ART hospital patients did not return to collect CD4 counts and therefore received no follow-up.
Under legislation passed in the wake of corporate scandals, auditors have been barred from providing information technology, legal, internal audit or bookkeeping services to the companies that they audit.
Yet, the practitioner literature indicates that, because internal audit lacks the client services incentives of external audit, internal auditors often adopt a "policeman approach" that can lead to negative interpersonal relationships with managers.
In May, Herbalife disclosed in a filing that it had used PricewaterhouseCoopers for payroll and administrative services but added that an internal audit committee had determined the earlier services would not have any bearing on the auditor's objectivity or impartiality.
From 20 to 25 clients receive both services, and the internal audit work generates several hundred million dollars a year for the accounting firm.
