Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Auditors’ New Task Proved Difficult

Auditors’ New Task Proved Difficult

by Rick Turoczy on December 1, 2005

Companies and their accountants faced “enormous challenges” that diminished the quality of audits as they tackled internal financial control assessments for the first time, the auditing profession’s oversight board reported Wednesday.

The Public Company Accounting Oversight Board said experience should allow accountants to overcome the difficulties of the 2002 Sarbanes-Oxley corporate-governance law provision, which required auditor approval of internal financial controls in 2004 annual reports. The challenges included a shortage of trained staff at companies and audit firms, a tight timetable and limited resources.

Auditors “were burned so badly” by the corporate scandals at Enron Corp. and elsewhere “that they’ve overreacted,” Romeo said. “The pendulum swung all the way over to the other side. Now it needs to return to the middle where it belongs.”

Auditors’ New Task Proved Difficult

Leave a Comment

Previous post:

Next post: