Scott,
<<Q: If we can go beyond the immediate issues: What changes should this lead to in the practice of accounting?
A: That's hell of a good question. And we're giving that a lot of thought. As I look at this, there needs to be some changes, no question. The marketplace has taken a severe psychological blow, not to mention the financial blow. I think as a profession, we have taken a hit.
And so I think we're prepared to think very boldly about change. I'd suggest to you that I've got two factors that I will consider in suggesting or accepting change. No. 1: Will this change -- whatever it might be -- significantly help us in improving the public's perception and trust in our profession? Secondly, will it really make a difference in terms of helping us improve our practice? And I'd also suggest that the capital market needs to look at itself and say whether or not everything performed as well as it could have.
Q: I don't quite understand what specific change you'd like to see. Some people have said the auditing ought to be much more tightly regulated, somehow divorced from the firms...that the government out to handle or oversee it. And consulting and auditing certainly ought to be separated. Do you think such dramatic changes are necessary?
A: I hear the same things, too.... As each day goes on, we all are learning something new. And people are having a broader perspective on what happened. And I'm not saying this should take forever, but let's give us a little more time to stand back...before we rush to solve the problems of the world.>>
I've got an idea: When an accounting firm learns of some financial illegality or "irregularity" on the part of one of its client firms, and has been charged with the task of making impartial, professional, honest, ethical disclosures for the benefit of the public, it DO SO.
ENE may not be the last public company to go this route (geez, I hope it is the biggest), and other accounting firms may have some tough fallout ahead of them as well. The ripple effect of damage from this mess will be huge.
jpgill |
