Audit firms considering private equity cash infusions must be wary of outside investors impacting auditor independence and firm culture, the SEC’s top accountant said Monday.
“It’s not my job to tell a firm how it should be organized or financed,” Securities and Exchange Commission Chief Accountant Paul Munter said at an academic accounting conference in Washington. “That being said, when you have investment coming in from private equity there are risks that come with that. In particular, you now have capital coming from a spot that’s not historically grounded in a public interest mindset.”
The accounting profession has seen …