The accounting profession is going through a period of soul searching and looking for changes that would restore public faith in its practices.
Several steps are being suggested that would entail only minimal government intervention, red tape and regulation.
In theory, independent directors representing the interests of shareholders employ auditors. But in reality the chummy relationship between management and directors often glazes over any distinction between them.
But if auditors went to work for stock exchanges, the exchanges could pay them either by billing the publicly traded companies or by pooling money derived from a new, small surcharge to trading transactions or both.
Source: Dave Cotton (Cotton & Co. LLP), CPAs (and I’m One) Can Reverse Their Losses, Washington Post, January 27, 2002.
For text http://www.washingtonpost.com/wp-dyn/articles/A41302-2002Jan26.html
For more on Financial Regulations http://www.ncpa.org/iss/reg/
FMF Policy Bulletin\30 January 2001
