PM urges auditors to do better
Prime Minister pushes for more clarity from auditors in a bid to prevent further credit crunch shockwaves
Gordon Brown has called on auditors to improve their efforts as the credit
crunch continues to batter the capital markets.
Talking to
the
Financial Times, The Prime Minister said that there was a need for more
clarity because companies may have been too complacent about the risks they
faced.
Brown said: ‘If the manifestation of the problems was an underpricing of
risk, the source of many of the problems was a deficit of transparency. That
transparency deficit needs to be addressed – from within organisations, their
auditors, the credit rating agencies and through regulatory requirements,
leading to an increased understanding by firms, investors and regulators.’
Further reading:
FRC
issues special advice for credit crunch audits