Another perspective on independence & indemnity

June 24, 2016

If an auditor’s client agrees to indemnify the firm in the event the firm must respond to an investigation on behalf of the client impair independence?  The SEC has argued for many years that the client’s agreement to indemnify the auditor removes the auditor’s incentive to perform a quality audit.  Some (myself included) have questioned whether this is truly a threat to the auditor’sindependence — versus an audit quality issue unrelated to independence.  The debate continues in light of a 2014 enforcement case concluded earlier this year…  Click here to read an article on the topic.