THE MARKETS: Market Place; Accounting Firms Accept Rule to Limit Conflicts of Interest
Securities and Exchange Commission reaches agreement with four leading accounting firms on new rule regarding independence that will substantially reduce the amount of consulting work that the firms can do for their audit; firms are PricewaterhouseCoopers, Ernst & Young, Arthur Andersen and Deloitte & Touche; requirement of increased disclosure, as well as new limitations on the nature of the consulting work the firms can do, is likely to mean that some companies will choose to shift nonaccounting work from their auditing firm to a competitor; agreement is significant victory of Arthur Levitt, SEC chairman (M)