06-06-2004, 06:29 PM
Accountants are geniuses. No doubt.
Every scandal always has some root cause.
The recent turmoil came on the accountants are really merger of the term auditing and accounting. The person or firm who is giving auditing services should not be involved in auditing and tax or any other service to the cliental.
The terms them selves are not root cause as auditor is librated to take decision regarding materiality, and due diligence while doing fieldwork. The main factor is auditor independence and ethics. Unless masseurs will not be taken to stream line these to main elements in auditing the issues like Enron will keep coming up, hence SOX is introduced which is, I understand, compromise from SEC of USA due to political pressure.
Regards,
<font face='Arial'></font id='Arial'><font face='Andale Mono'></font id='Andale Mono'>
kris
Every scandal always has some root cause.
The recent turmoil came on the accountants are really merger of the term auditing and accounting. The person or firm who is giving auditing services should not be involved in auditing and tax or any other service to the cliental.
The terms them selves are not root cause as auditor is librated to take decision regarding materiality, and due diligence while doing fieldwork. The main factor is auditor independence and ethics. Unless masseurs will not be taken to stream line these to main elements in auditing the issues like Enron will keep coming up, hence SOX is introduced which is, I understand, compromise from SEC of USA due to political pressure.
Regards,
<font face='Arial'></font id='Arial'><font face='Andale Mono'></font id='Andale Mono'>
kris
