Academic journal article Journal of Accountancy

Capitol Hill Proposes Post-Enron Reforms

Academic journal article Journal of Accountancy

Capitol Hill Proposes Post-Enron Reforms

Article excerpt

Congress is addressing the need for changes that will help restore investor confidence in corporate financial reporting. In late April the House passed a bill called the "Corporate and Auditing Accountability, Responsibility and Transparency Act of 2002." The proposed legislation would increase the SEC's involvement in the accounting profession's regulation, establish a new oversight body to ensure auditors' integrity and independence and mandate retention of certain audit records for a minimum of seven years. The bill also calls for changes that will affect the corporate community. Certain provisions would force companies to quickly disclose their financial condition and off-balance-sheet transactions upon the SEC's request and also would prevent corporate officers from exerting improper influence on auditors.

James G. Castellano, AICPA board chairman, acknowledged the "unprecedented times" call for "transformational change." But, he said, the profession "is prepared to support such modifications. In particular, we advocate moving the discipline and peer review processes for public company auditors from the private sector to a public body."

Sponsored by Representative Michael G. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.