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Would that make auditors more careful?
That might make auditors reluctant to lead difficult audits.
It's often assumed that concern for reputation will make auditors sniff out fraud and chicanery.
"We said the first thing you have to do is make auditors independent," Ms. Roper recalled.
But it is clear that the problems included areas that the Sarbanes-Oxley Act sought to make auditors deal with, and thus provides an indication that inattention to such controls can be disastrous.
With the passage today of broad new laws to make auditors and executives more accountable, House and Senate lawmakers are turning their attention to other measures to address the spate of corporate scandals.
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They should bar auditors from providing all non-audit services to audit clients and make auditor-firm rotation mandatory.
And changes in several laws since 1998 have modernized some Russian accounting practices and, more recently, made auditors more responsible for the integrity of the figures they sign.
That would be one important step toward making auditors remember that their real client is the public that is asked to rely on their certification of financial statements -- not some investment banker offering a fat fee for a friendly opinion.
If auditing firms themselves had to be changed every few years, it would go a long way toward making auditors genuinely independent.By requiring that all companies listed on public stock exchanges file audited financial reports, governments around the world have given accounting firms not only a unique franchise, but a public mandate.
"It's not a secret that he hoped to be made auditor general of the Vatican," Chaouqui said in an interview after she was released from custody, published yesterday in La Repubblica.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com