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If auditors enforced some consistency on ranges, then financial statements of different companies might be more comparable, even though they chose different estimates.
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But over the next couple of years, as auditors enforce more conservatism, reported profits may not do as well as real earnings.
First, we significantly extend knowledge about compliance auditing by looking beyond economic conflicts of interest to the broader array of social institutions, identities and relationships that shape the way auditors enforce the rules.
"They have auditors to enforce federal regulations". Those regulations require that lenders review for risks, one of which is flood hazard.
"Auditors have not enforced a consistent approach among their clients," wrote Peter Elwin, the head of European accounting research for J. P. Morgan.
The law's requirement for an independent auditor has never been enforced for companies worth less than $75 million.
In other cases, taxpayers created their own problems, refusing to cooperate with auditors or bombarding them with so many irrelevant letters and phone calls that the auditors responded by enforcing every excruciatingly detailed rule they could apply.
The regulator's attack on China's auditors is fair, but enforcing it could lead to a chaotic wave of delistings from American markets, John Foley writes in Reuters Breakingviews.
Strictly Enforced.
Was the limit enforced?
They enforced things.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com