The SEC has been concerned with the independence of external auditing firms. It is especially concerned about

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The SEC has been concerned with the "independence" of external auditing firms. It is especially concerned about how large non-audit (such as consulting) fees might impact how aggressively auditing firms pursue accounting issues they uncover in their audits. Congress recently passed legislation that prohibits accounting firms from providing both consulting and auditing services to the same client. How might consulting fees affect auditor independence? What other conflicts of interest might exist for auditors? How do these conflicts impact the governance process?

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