What the Collapse of the Large Firms Would Mean

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« The "Independent" Auditor's Real Client? Time to Re-Assess, I Kid You Not | Main | Mandatory Auditor Rotation -- The PCAOB Sails Off the Charts »

August 07, 2011

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Richard E. Brodsky

"The appropriate involvement of meaningful regulatory oversight, quality enforcement and investor rights recognition." Aha, now we're getting somewhere. Unfortunately, there will never be any of the three because these require political change.

Meaningful regulatory oversight: the Congress has purposely starved the SEC, and even when it wasn't being starved it was fast asleep, along with FINRA. Meanwhile, the PCAOB lives on in obscurity and the politicians stand ready to defang the FASB whenever it wakes up from its slumber/

Quality enforcement: the SEC is late to every fire, misses the big ones, and can't even investigate a high-flying broker-dealer that is the custodian for its clients' trades (Madoff).

"Investors rights recognition": "The profession" got what it wanted when the Gingrich Congress and the Reagan-Bush Supreme Court made it virtually impossible to sue accounting firms for faulty auditing.

Jim Peterson

Thanks -- not that I'm so naive as to confuse "desirable" with either "likely" or "achievable." To do so would fall into the "Nirvana fallacy" -- that is, to mistakenly include a fanciful assumption and then assert the unrealistic as possible.

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  • © 2007-2016 James R Peterson Special thanks: Francine McKenna. Always with love: Kat and Julie. In memory: Bob White, Stuart Kadison