Whole Network Most Recent TOP10 Accounting Compliance Ethics SOX

 

More transparency for audits

Filed in archive Accounting by leon on August 07, 2006

More transparency for audits
For a professionlinks that likes to think of itself as transparent, auditors might have some way to go. Particularly when it comes to companies revealing to the market why they have dismissed or changed an auditor.

According to risk researchers, Glass Lewis, it's one area that needs urgent attention. It's absolutely critical information for investors.

In their report Mum's the word, they point out that 1,430 publicly held companies changed their independent accounting firms last year including 77 companies that changed auditors at least twice. But in the vast majority of cases, we don't know why, because neither the companies nor the auditors disclosed the reasons.

"Perhaps it's our skeptical nature, but we suspect a lot of the companies that stayed mum changed auditors because of less virtuous reasons: to seek more favorable opinions, to flee from disagreements,to cut costs in a way that may diminish audit quality, or because their former auditors couldn't rely on them," says the report.

The report calls on the SEC to expand its list of required "reportable events" so that investors get more information about such matters as whether there had been difficulties conducting the audit and whether the auditor had advised the company about potential fraud.

Investors need nothing less from the profession that's required to watch over the companies that they, the investors, own.






Permalink: More transparency for audits
Tags: auditors  Glass  Lewis  more  corporate  business  transparency+audits  more+transparency  small+business 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/31179



Advertisement


Advertisement


RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter

Use the search to look for other interesting posts



 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give Luis a call at +1 (650) 331 8047.


  • Other blogs in the same channel in the Creative Weblogging Network







 
Tagcloud: Accounting boards of directors Compliance corporate crime corporate governance corporate reputation Ethics events executive pay litigation markets regulators risk shareholder activism SOX Sponsored Blog strategy