The General Accounting Office, the investigative arm of US Congress, studied the process that led to the controversial appointments of five members to the Public Company Accounting Oversight Board created under the Sarbanes-Oxley Act.
It concluded that while Pitt was in charge, he left the process of selecting and vetting members to the chief accountant Robert Herdman. This approach was neither understood nor endorsed by the other commissioners.
‘The overall process that emerged was neither consistent nor effective and changed and evolved over time. Several factors contributed to the eventual breakdown of SEC’s selection and vetting process,’ the GAO reported.
The GAO found that a breakdown in communication, failure to define selection criteria and inability to produce a final slate of candidates until the eve of election, resulted in the appointment of members who had not been fully vetted.
On the day of election, 25 October, Herdman became aware of potentially controversial information about nominated PCAOB chairman William Webster, but decided not to share this information with Pitt or other commissioners.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements