ACCA calls for 'far-reaching actions' post-Enron
The potential damage to the reputation of the auditing profession in the wake of the Enron collapse means that the global financial community must consider far-reaching actions, according to ACCA.
Jonathan Beckerlegge, chairman of ACCA’s Audit Committee, called for urgent discussions on a range of solutions to the profound concerns relating to the independence of auditors following Enron.
His suggestions include reducing the influence of executive directors over the appointment of company auditors and fuller disclosure of audit and consulting fees in annual reports and accounts.
He said: ‘Unless the global financial community – represented by IFAC, IOSCO and the transnational accounting firms – works together to tackle a number of pressing problems, there is a risk that the issue of auditor independence will resurface again and again. Action must be taken to ensure that trust in the audit remains strong and that investors can have confidence in reported accounts.’