Eliminate conflicts of interest in Accounting
In the accounting world, conflicts frequently occur when a firm provides multiple services to the same client, such as audit, tax, forensic accounting, and bankruptcy services.
In America, accountants are barred from providing most non-audit services to firms they audit. (This rule was introduced after the collapse of Enron, whose auditor, Arthur Andersen, was thought to have gone easy on the crooked energy firm to protect its lucrative business advising it.) In other countries, however, the rules are less strict.
In Britain, firms may perform “internal audit” for a company—which involves giving some advice—while also performing its traditional external audit. KPMG, for example, last year won the race to provide both services to Rentokil, a British pest-control firm. Such an arrangement would be illegal in America.