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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: JeffT who wrote (56935)	1/31/2002 12:42:01 AM
From: i-node	Read Replies (2) \| Respond to of 77397

I too believe that the audit firm should not be allowed to provide any other services to their audit client, such as management advisory services. Eliminating other services won't solve the real problem -- there is an inherent conflict of interests when the entity you're auditing is the same as the entity that is paying you. I think it is likely we're going to see a bogus bandaid applied to the problem in the form of a limitation of advisory services to auditees. This would serve only to set us up for another, bigger fall somewhere down the road. Is it any easier for the audit manager to deliver a qualified opinion when $50M/year in audit fees are at stake vs. $50M/year in audit + $50M/year in MAS. No; the audit manager still isn't going to make the tough call. The only road to true independence is to take the decision process about who will do the audit out of the hands of the auditee.