The U.S. Senate is poised to pass accounting reform legislation in the wake of recent scandals, but there is opposition — several senators believe it will hurt small businesses, reports the Plumbing-Heating-Cooling Contractors—National Association (PHCC).

The accounting bill, authored by Senate Banking Committee chairman Paul Sarbanes (D-MD), would prohibit accounting firms from auditing the books of publicly traded companies and potentially providing lucrative consulting services at the same time.

Sen. John Ensign (R-NV) said he is concerned states will rubber stamp the federal legislation, applying similar restrictions on accountants working for small businesses.

Publication date: 07/29/2002