« Mandatory Auditor Rotation -- Further Thoughts on PCAOB Chairman Doty's Bad Idea | Main | The "Independent" Auditor's Real Client? Time to Re-Assess, I Kid You Not »

June 28, 2011

Comments

James McRitchie

Another approach would be that suggested by Mark Latham, the founder of VoterMedia.org. Let shareowners choose the auditor by vote. See section 5 of Latham’s article “Proxy Voting Brand Competition” in the Journal of Investment Management, January 2007.

Latham proposes shareowners should at least be permitted to vote on a company-by-company basis through private. Unfortunately, the SEC has allowed management to exclude such proxy proposals, buying the argument that auditor selection is an “ordinary business” matter. I don’t know how anyone can agree with that after the collapse of Enron after a relatively clean bill of health from their auditor.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)

Never miss a post
Please enter all required fields
Correct invalid entries

  • © 2007-2017 James R Peterson Special thanks: Francine McKenna. Always with love: Kat and Julie. In memory: Bob White, Stuart Kadison