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Arthur Levitt on PwC's Deal to Buy Booz: 'We Are Slipping Back'

Former SEC Chairman Arthur Levitt advocated rules to keep accounting firms from providing both auditing and consulting services to a client
Former SEC Chairman Arthur Levitt advocated rules to keep accounting firms from providing both auditing and consulting services to a clientPhotograph by Peter Foley/Bloomberg

After the 2001 collapse of Enron, auditing firms came under pressure from regulators to separate their auditing and consulting businesses. In 2002, PricewaterhouseCoopers sold its consulting business to IBM for $3.5 billion.

On Wednesday, the auditing firm made it clear it wants back into that business, agreeing to buy the consulting firm Booz & Co. Terms of the deal were not disclosed.