RegulationAccounting StandardsUS probes accountants’ role in preventing financial crisis

US probes accountants' role in preventing financial crisis

A US inquiry into the role of the accounting profession in preventing another financial crisis opened yesterday, and the body heard from state regulator the SEC

A US PROBE into the role of accountants in preventing another financial crisis has been launched, and its parameters mirror questions being asked in the UK.

The Senate Committee on Banking heard from James Kroeker, chief accountant of US regulator the Securities and Exchange Commission. He said transparent reporting and objective auditing assume even greater important during times of financial crisis, and highlighted the importance of effective standards setting.

Other witnesses included James Doty, chairman of the Public Company Accounting Oversight Board (pictured above), who strongly called for the body’s disciplinary proceedings to be made public. He said this would benefit investors, issuers and auditors, claiming it would prevent them being “kept in the dark” after hearings resulting in adverse findings.

The first session took place yesterday, and experts in audit, financial standards and commerce gave evidence to the board, which is chaired by Democrat senator Tim Johnson.

Related Articles

IASB pledges to maintain ‘strong’ bilateral relationship with FASB

Accounting Standards IASB pledges to maintain ‘strong’ bilateral relationship with FASB

3y Richard Crump, Writer
Standard setters “out of synch” over auditor reporting rules

Accounting Standards Standard setters “out of synch” over auditor reporting rules

4y Richard Crump, Writer
IFRS adoption will eventually happen, US investors tell ACCA

Accounting Standards IFRS adoption will eventually happen, US investors tell ACCA

5y Richard Crump, Writer
IFRS's quality not tarnished by US delay, says ICAEW

Accounting Standards IFRS's quality not tarnished by US delay, says ICAEW

5y Richard Crump, Writer
IASB takes swipe at SEC delay over IFRS

Accounting Standards IASB takes swipe at SEC delay over IFRS

5y Richard Crump, Writer
SEC decision over IFRS kicked into the long grass

Accounting Standards SEC decision over IFRS kicked into the long grass

5y Richard Crump, Writer
PCAOB founding member retires

Accounting Standards PCAOB founding member retires

6y Rachael Singh, Writer
ICAEW: Pass/fail audit report is best

Accounting Standards ICAEW: Pass/fail audit report is best

6y Rose Orlik