US committee will examine choice in audit market
Committee of 19 is to closely examine business model used by the firms
The US Treasury Secretary, Henry Paulson, has announced a committee of 19
lawyers, accountants and financial services executives and academics who are to
look at ways of improving the concentration of the US audit profession.
The panel – which is one of several official efforts designed to boost the
competitiveness of the US capital markets – has been tasked with making
recommendations by 2008. It will examine industry issues, the business model
used by the audit industry, and ways to draw and maintain more capable
practitioners.
Reuters.com reported that the committee includes Xerox CEO Anne
Mulcahy, KPMG CEO Timothy Flynn, and head of the Council of Institutional
Investors Ann Yerger, as well as Barry Melancon, president of the American
Institute of Certified Public Accountants.
The committee follows similar efforts in the UK, where the Financial
Reporting Council initiated the formation of the
Market Participants Group
(MPG) which last year began examining the level of choice of audit firms in the
market.
The MPG’s final recommendations are due later this month.
Further reading:
US
Treasury Names Members Of Audit Advisory Group
Panel
Picked to Study Auditing Industry
Audit choice: handle with care