PwC chief blasts US audit rules

DiPiazza said US audit standards were full of loopholes and prone to misuse because of the US rule-based system which allows ‘exception upon exception’.

He added: ‘The US set of rules and exceptions are a road map for investment bankers to engineer transactions.?

Last month’s appointment of Bob Herz, as incoming chairman at the US Financial Accounting Standards Board, was the clearest signal yet that the US will move to a principles-based approach.

A senior partner in PricewaterhouseCoopers and a part-time board member of the International Accounting Standards Board, Herz hinted that he wanted to bring the US rules-based process closer to a principles-based approach, used by the UK and the rest of the world.

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