Because you all have made the point strongly that there is no evidence to show that impairment, we would like to see that revenue data to see whether there are instances where we think perhaps there has been some impairment of auditing judgement because of the size of non-audit fees
MR. Where was I? My point is that establishment of state of mind or whether or not someone did something with knowledge I thought was a point of evidence that was used in proceedings.
So I’d say transparency is a friend
And why we would ignore it in this case, where we can’t prove that they behaved in this particular way because of the knowledge of non-audit services, it’s okay to presume that they might have?
Again, there have been studies over the years, a fair amount of research, different commissions that have not been able to come up with an instance, and I’ve been in this business for 32 years.
And I’ve been in and out of a lot of different roles in the firm. I’ve been involved in a lot of difficult situations where maybe I didn’t think we should have donewhat we should have done, but it was never influenced by something outside of the audit process.
There are things that might influence inside the audit process, but never have I encountered that. That’s why I have a great deal of difficulty putting stock in that statement.
COMMISSIONER HUNT: Each of you gentleman I think have made the point that you know of no instances in which the rendition of non-audit services to an audit client has impaired the quality of the audit.
As I think I said this morning, I think I have some cases like that, but I’m not an accountant, thank god, so maybe what I saw was different. Continue reading “STRANGE: I was just pointing out my inferiority, actually”