Volcker calls for increase in auditors' fees
Paul Volcker, chairman of the trustees of the International Accounting Standards Committee, said yesterday that auditors should be paid more if companies wanted improved financial oversight.
Speaking in Brussels Volcker said increased auditors’ fees would make it more feasible for accountancy firms to separate audit from consultancy and thereby end the debate on perceived conflicts of interest.
Volcker, a former US Federal Reserve chairman, said: ‘Crises are the antidote to complacency and I feel certain that recent events will stimulate more effective supervision of auditing firms and practices,’ the FT reported.
He said radical changes were needed in the profession to resolve the weaknesses of the global financial system brought to the fore by the collapse of the US energy giant Enron.
He added that more research on proposals for auditor rotation was needed before any changes were made.