In light of the Securities and Exchange Commission's report that auditors at PricewaterhouseCoopers of New York compromised their independence with their mutual fund and other securities holdings, the SEC might cite other accounting firms for putting their independence in question, said accounting industry lawyers and executives.

No matter how prestigious and formidable the accounting firm a fund company has hired, mutual fund complexes must conduct due diligence of their own to determine whether their auditors are indeed independent, industry executives said, following the SEC report.

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