Few fund accountants allow for rising independence issues (IGNITES)

With only a few accounting firms handling most fund audits, fund companies may face greater regulatory scrutiny regarding their auditor’s independence. Recent data shows that only five accounting firms worked with over 78% of all fund companies. FrontLine’s Founder and President Amy Lynch comments that fund directors should prepare for more reviews of their auditor’s role since conflicts and independence issues can be more prevalent with only a few accounting firms conducting the vast majority of fund audits. Ms. Lynch adds that the SEC has provided the Public Company Accounting and Oversight Board (PCAOB) more power to do greater oversight of these accounting firms, which could lead to more cases against them. See IGNITES (subscription required), “Five Fund Accountants Audit Most Firms’ Finances”