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June 15, 2011


Norman Marks

So what should be in the external auditor's report, Jim?

Thanks Norman -- The IAASB paper has identified a whole menu of opportunities. Given the opportunity to write on a blank slate (which will occur when the next of the Big Four disintegrates and the entire large-firm franchise goes down with it) -- the now-standard language would be scrapped in favor of specific auditor attention to, and assurance on, the particular aspects of an enterprise that are critical to all parties. Freed of the obligation to satisfy the compliance obligations of the regulators, issuers and their auditors could be tested in their innovation and responsiveness by the capital markets themselves.

Or so we dream.



While I agree that a CFO does not necessarily need to be a CPA, don't discount the subject area(s) in which a CPA is an expert; i.e. Accounting/Finance. The primary responsibility of a CFO is to make decisions based on financial risk to an organization and the effect on the financial statements. Either being a CPA or having one close at hand (internally/externally) is critical to a CFO.

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