The SEC requires companies to disclose fees paid to independent public accounting firms for audit and consulting services in the belief that:
A. Such disclosures will end the practice of auditors performing nonaudit services for audit clients.
B. Financial analysts will attribute far less credibility to financial statements audited by public accounting firms that earn substantial nonaudit fees from audit clients.
C. An audit firm’s consulting on a client’s accounting information processing systems essentially impairs audit independence.
D. Client directors and financial statement users should consider all aspects related to auditors’ independence, and information about fees is important.
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