New US watchdog to oversee profession
The US Securities & Exchange Commission has put forward plans for a new accountancy watchdog to regulate the profession in the wake of the demise of Andersen.
To be known as the Public Accountability Board, it will be made up of six independent members and three accountants and will be funded by mandatory accountancy firm fees and money from corporate audit clients.
The PAB will have the ability to impose sanctions against firms that do not conduct themselves in a proper fashion, impose fines and suspend them from practising as auditors.
The new body will have far stronger powers than the body it will replace Public Oversight Board.