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This would also solve the problem of auditors' having conflicts of interest, since they would not be hired by the companies they audit.
More than two dozen other bills are in development to head off future Enrons: some would change the way companies issue stock options, others take on the problem of auditors who act more like lap dogs than watchdogs.
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While the sale by Ernst & Young represents a possible answer to the problem of auditor independence, the transaction has not yet been approved by the S.E.C. Ernst & Young's audit partners will still own a sizable piece of Cap Gemini, and regulators may view the arrangement as one that continues to pose a conflict of interest for the firm's auditors.
In September 2000, a year before Enron 's first restatement touched off the wave of accounting scandals, Biggs, 66, testified to Congress about the problem of auditor independence.
She is concerned that Congress "may try to solve profound problems of auditor independence and corporate governance with Band-Aids".
If it takes off, his company could, in effect, show that the market can provide an answer to problems of overseeing auditors that have been partly created by the Big Four's dominance.
Previous studies on balancing all stakeholders' interests have shown that lack of conceptual framework has been one of the main problems in terms of auditors' attitude and consequently their behavior (Arel 2012; Broberg et al. 2013; Clow et al. 2009).
The defection of auditors in offices in the United States could be a critical problem for Andersen, which needs to hold onto enough accountants to survive.
Other government agencies also had serious financial problems — out of fifty, auditors found problems with forty-nine — buthehe scale of plunder in the railway world was in a class by itself.
"I am left," he said, "with the inescapable question whether the root of the problem is auditor skepticism, coming to ground in the bedrock of independence.
The first is the regulation of auditors.
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