When Accountants Switch Sides
- Topics:
- Audits
- Source:
- CFO Publishing
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Overview: The article focuses on the problems of corporations due to auditors. The scenario states that management team hires an independent audit firm. Over the course of a year, that audit team works closely with members of the company's management team, going over the books and such. In turn, the company's management team gets to know — and feel comfortable with — members of that audit team. Eventually, the company's management offers a member of that audit team a job — usually on the company's finance staff. Often, the original accounting firm stays on as the company's independent auditor. The $62 billion bankruptcy in Texas has led many legislators to call for new rules prohibiting corporations from buying consulting services from their independent audit firms.
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Format: HTML | Date: Apr 2002 | Pages: 4
