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Responding to the Enron debacle, President Bush will unveil proposals today to protect investors better through faster and more complete disclosure of information, improved auditing rules and new requirements for executives, officials said.
A27 BUSINESS DAY C1-14 Bush Investor Security Plan President Bush, responding to the Enron collapse, will offer proposals for protecting investors that call for faster and more complete disclosure of financial information, improved auditing standards and new requirements for executives, officials said.
As Congress considers legislative responses to the collapse of Enron, President Bush will unveil proposals to protect investors better through faster and more complete disclosure of important financial information, improved auditing standards and new requirements for executives, administration officials said tonight.
It will require them to self-report more frequently, and submit to "improved auditing activities".
The agreement also calls for other periodic reports pertaining to improved auditing and risk management practices.
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Tougher regulation of auditors through the new accounting oversight board under the chairmanship of William McDonough, a former head of the New York Fed, should help to improve auditing.
"[The NYPD] will have to improve auditing to ensure that stops are valid rather than just meeting quota," Azmy said.
The panel said it could find no evidence that providing non-audit services had hurt audit quality, and in approximately 25percentt of the cases it actually improved audit quality.
Regulations supporting effective disclosure, as well as improved audit, accounting and risk-rating standards, should be preferred to restrictive regulatory controls that block innovation and growth.
"The question is whether Andersen can recover as a firm that will return to its roots as a first-class auditor," he said last week, adding, "I think that would be good for Andersen, and I think it would be good for the system .On the other hand, others argue that making an example of Andersen is not only fair, but could improve auditing, and thus the quality of corporate accounts.
The rules proponents counter that such a requirement would create more accountability and transparency, as well as improve audit quality.
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