In 2014, government regulators and lawmakers continued express their concerns over accounting firms’ dual role as a tax service provider and an auditor would create the conflict of interest problems.

The PCAOB confirmed that it would continue to monitor some of the largest accounting firms whether their tax consulting services create conflict of interest with their auditing works. The PCAOB was worried that as more American companies generated profit from lower-taxed jurisdictions, audit risks were becoming increased. The European Union decided to apply a stricter rule on providing tax services by accounting firms.

For more, see Year in Review: Non-Audit Tax Work Reemerges as a Possible Independence Risk, Thomas Jaworski, Tax Analysts.

Posted by Jin Keol Park, Associate Editor, Wealth Strategies Journal