The US audit watchdog has survived a court challenge which threatened to
overturn the regulator landmark US legislation born out of the Enron scandal.
Under the ruling, handed down by the US Supreme Court yesterday, the audit
industry regulator, the Public Company Accounting Oversight Board (PCAOB), will
continue to operate, however its board members will be removable by the US
securities regulator “at will” rather than for “good cause”.
Critically, the 5-4 ruling keeps the board’s primary functions in tact and
allows it to continue operating. It was feared the board’s demise have opened
the door to new legislation which could include far ranging reform for auditors
and the financial services industry.
In a statement, PCAOB Acting Chairman Daniel Goelzer welcomed the decision.
“We are pleased that the decision allows the PCAOB to continue without
interruption to carry out its important mission of overseeing public company
audits in order to protect investors and promote the public interest,” he said.
While everyone values audit quality highly we must be be careful that we don’t let it deter talent. We need to guard against its commoditisation and the threat to a unitary profession
Commissioning and preparing an asset valuation for financial reporting should involve a three way dialogue between the client, valuer & auditor
As a change-agent, internal audit has a lot going for it, but many internal audit functions need to upgrade their skills.
EY has been retained as auditors of Britvic following a competitive tender process, the soft drinks company has said