Throw away the bath water but keep the baby

Article Abstract:

The various proposals calling for a higher level of auditor regulation tend to overlook the dangers that would be brought about by a radical shake-up of the audit profession. Some proposals, for example, argue that the establishment of an independent statutory authority would be an improvement over the current system of self-regulation. This argument, while seemingly cogent, ignores the negative side-effects that such a regulatory set-up could have on the audit profession. These negative consequences would almost surely include the breakup of professional accounting firms into audit and non-audit specialists, the subsequent diminishing of the appeal of audit work, and the eventual narrowing in the quality of experience possessed by an average auditor. The eventual outcome of proposals of this sort would only be the weakening of the audit profession's ability to protect the public interest.

Analysis, Laws, regulations and rules, Column, Industry regulations, Industry self-regulation, Industry self regulation, Government regulation of business, Trade regulation, Auditors, Public interest

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What the regulators saw

Article Abstract:

The Institute of Chartered Accountants for England and Wales has been conducting its audit registration process since late 1990 and has of late Oct 1991 approved more than 8,500 applications. The audit registration process is part of the preparation necessary for the successful implementation of the Institute's new audit regulation regime. The audit registration essentially provides needed documentation as to which companies have complied with the Institute's operational standards for auditing work.

Professional organizations, Institute of Chartered Accountants in England and Wales

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