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September 05, 2011

Comments

Steven Lazar

Insightful as always, thank you. I would like some clarification as to why mandatory minimum audit terms would be a good mechanism for creating a more effective regulatory structure, and therefore allowing investors to make better decisions. I can see the overarching goal as relieving some of the pressure from auditors to bend too much to management, but I was taught that auditor dismissal or resignation sends up a red flag to investors, thereby acting as an effective check to that sort of behavior. Is this correct, and what more is there to this?

Independent Accountant

TS:
I once favored audit firm rotation. No longer. Why? Having Big 87654 firm 1 followed by Big 87654 firm 2 will accomplish nothing. They will scratch each other's back.

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