Throw away the bath water but keep the baby
Article Abstract:
The various proposals calling for a higher level of auditor regulation tend to overlook the dangers that would be brought about by a radical shake-up of the audit profession. Some proposals, for example, argue that the establishment of an independent statutory authority would be an improvement over the current system of self-regulation. This argument, while seemingly cogent, ignores the negative side-effects that such a regulatory set-up could have on the audit profession. These negative consequences would almost surely include the breakup of professional accounting firms into audit and non-audit specialists, the subsequent diminishing of the appeal of audit work, and the eventual narrowing in the quality of experience possessed by an average auditor. The eventual outcome of proposals of this sort would only be the weakening of the audit profession's ability to protect the public interest.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
What the regulators saw
Article Abstract:
The Institute of Chartered Accountants for England and Wales has been conducting its audit registration process since late 1990 and has of late Oct 1991 approved more than 8,500 applications. The audit registration process is part of the preparation necessary for the successful implementation of the Institute's new audit regulation regime. The audit registration essentially provides needed documentation as to which companies have complied with the Institute's operational standards for auditing work.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: From Russia to Cuba with lower costs. Clear conscience with good returns. Climb the corporate bond returns ladder
- Abstracts: Don't let the taxman grasp the winnings. Tax planning for the expatriate. The Revenue's special offices can strike hard
- Abstracts: Cheques and the default surcharge. Customs' ghost at the Euro-feast
- Abstracts: Beyond the corporate logo. Let the computer take the strain. Pulling Blacks back from the brink
- Abstracts: An empirical test of the resource-based theory: strategic regulation in the Dutch audit industry. Corporate diversity and economic performance: the impact of market specialization