« Racing to Avoid a Crash: On the Track -- On the Street | Main | What Should Be In the Auditors' Report? Would Users Know When They Saw It? »

June 07, 2011

Comments

Elliot Kamlet

Interesting article today in the CFO Journal of the Wall Street Journal. It seems that Apple lets out its audit for re-bidding every 5 years and switches auditors.
Why are fees high enough that a competitor with the same cost structure can come in for less? The only logical answers I can think of is that the current auditor simply raises fees all the time even above the required level. Also, the new auditor is hoping to grab some other business for itself. But how does the new auditor learn the ins and outs of the business so quickly that it can afford to underbid the established auditor?
Sarbanes Oxley might be the answer. Since an auditor may no longer perform advising work for an audit client, most multi-national companies employ 2-3 of the Big 4 in different capacities. They all must learn the ins and outs of the company. When they begin an audit, they already have a great deal of knowledge about the company.

Robert F. Kelley

"Mandatory rotation of auditors" along with "independence" lie together in the murky pool of contemplation {def. the action of looking at something for a long time} never to be revived. Absolute salvation for auditing will be real-time auditing with access by lenders and investors.

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

  • © 2007-2018 James R Peterson Special thanks: Francine McKenna. Always with love: Kat and Julie. In memory: Bob White, Stuart Kadison