Going In Circles: A Few Remarks On Audit Reform

Going In Circles: A Few Remarks On Audit Reform

Don't get me wrong.

I'm thrilled that there's a lot of traffic in my lane. What I mean is, it's good for everyone that we're talking about these issues and that someone other than me and a few other broken records are playing these tunes.

Fairly new PCAOB Chairman Jim Doty and his fellow board members have been on the road constantly since the three newest members - Doty, Ferguson and Hanson - took their seats in February. And they're not letting up on the auditors and thier firms.

Every speech is laced with lessons, examples, and promises of more to come.

Some key areas of focus:

There's been significant activity in many of these areas. In fact, Board member Lew Ferguson is currently in China with representatives of the SEC to discuss opening up that country to PCAOB inspectors.

But whenever talk of audit industry reform comes up, usually after the latest accounting scandal or major fraud, the same old suggestions come up again, too.

The global financial crisis set in motion, again, the soul searching that occurs every ten years or so in the audit industry. It's been almost ten years since the Enron scandal bred the Sarbanes-Oxley legislation that was supposed to be the "be all end all" for auditor failures and to prevent frauds and failures of all kinds.

But, of course, this wasn't the case.

Read this article in its entirety at the re: The Auditors, a blog by Francine McKenna.