PracticeAuditPM under fire after criticising audit ‘bonanza’

PM under fire after criticising audit 'bonanza'

ACCA says Blair was 'misguided' over comments that auditors have enjoyed a 'bonanza' as a result of the Sarbanes-Oxley Act

The chief executive of ACCA has said Tony Blair was ‘misguided’ after the prime minister questioned the ‘bonanza’ that auditors have enjoyed as a result of the Sarbanes-Oxley Act, writes Gavin Hinks. Allen Blewitt said Blair was ‘putting the blame on people who have been impacted by the legislation’.

Blewitt added: ‘It’s a little misguided to make a broad-brush criticism of accountants and auditors.’

Link: Blair criticises Sarbanes-Oxley Act

In his speech on risk and public policy at University College London, Blair criticised Sarbox for going way beyond the limits of the specific problem it was intended to tackle. ‘Sarbanes-Oxley has provided a bonanza for accountants and auditors, the very professions thought to be at fault in the original scandals,’ said Blair.

Neil Lerner, KPMG’s head of regulatory affairs, said Blair was right to highlight the burdens of Sarbox but added: ‘There’s no evidence that auditors caused the collapse.’

The Securities and Exchange Commission declined to comment.

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