Can Integrity be Legislated?
Auditing Accounting: How the New PCAOB Is Rewriting The Rules
Since the turn of the century high profile accounting debacles have ravaged investor confidence in the capital markets. In 2002, Congress responded by forming a new organization to oversee the accounting profession: The Public Company Accounting Oversight Board (PCAOB), created by the 2002 Sarbanes-Oxley corporate reform law.
Part of the SEC (Securities and Exchange Commission), the five-member PCAOB will inspect registered public accounting firms and conduct investigations. It is also empowered to impose sanctions, where appropriate. Yet some experts question whether federal government involvement is most effective way to address accounting's challenges.
Related Links: Video: Roundtable on Integrity in Financial Reporting | United States Securities & Exchange Commission
Expert Views and Perspectives
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"The Problem Is Bigger Than Bureaucracy." "We're overdue for a wholesale change in the way earnings are portrayed and value expressed." "Every department of the federal government tends to become bigger, denser and more glutinous over time." "Almost every company is bending the rules to smooth earnings and meet investor expectations." |
"The Previous Board, The POB, Was Merely A Toothless Tiger." "The New PCAOB Follows Recommendations Laid Out By the POB." "Unlike its predecessor, this board is not dependent on the AICPA or the big five accounting firms for its funding." "Total deregulation accompanied by no control is an invitation for unscrupulous people to abuse the system." |
