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Accountants to split roles
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February 1, 2002: 7:41 a.m. ET
Report: Four of Big Five firms agree not to consult and audit the same client.
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NEW YORK (CNN/Money) - Four of the Big Five accounting firms said they will discontinue offering consulting and auditing services to the same client, a practice which came under scrutiny after Enron's collapse, according to a published report Friday.
The accounting industry has come under fire recently because firms earn more from consulting than from accounting services. However, Big Five firms sometimes perform dual duties, serving as an auditor while also providing the same client consulting services, thus creating a potential conflict of interest.
PriceWaterhouseCoopers and Arthur Andersen, Enron's former accountant, said they will no longer offer technology consulting and auditing to the same client. The firms also said they will not provide internal and external auditing services to the same customer as well, The New York Times reported.
Indeed, PriceWaterhouseCoopers said earlier this week that it will file a registration to spin off its consulting arm this spring.
Ernst & Young and KPMG, which have already split from their consulting units, said they will support the same measures, the paper reported.
The remaining firm, Deloitte & Touche, has repeatedly expressed its desire to keep its consulting and accounting operations under the same roof, according to the Times. 
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