ICAEW sets out reform programme
The ICAEW will this week launch a programme of reform which, it hopes, will ease fears of further corporate collapses and accounting scandals in the wake of Enron.
Wyman, incoming president of the institute, will outline his proposals this Wednesday, which will included a two-year ‘cooling off’ period for auditors who want to join their clients.
He will also set out recommendations on limiting auditor liability to prevent the total collapse of accountancy firms – Big five firm Andersen has all but disappeared under the weight of threatened litigation and client defections.
Wyman will take over the institute at a crucial time for the profession – accountants and auditors have had to endure close scrutiny since the collapse of US energy trader Enron with public trust in the profession at an all-time low.
Wyman is also expected to detail the need for further research on the rotation of auditors.
Further details of the institute’s reform programme can be read this Thursday in Accountancy Age and on accountancyage.com.