GAO: mandatory audit rotation reforms should wait.After studying the impact of mandatory audit rotation outlined by the Sarbanes-Oxley Act See SOX. , the GAO is asking Congress and federal regulators to delay potential rulemaking on the issue for several years. The report found that the benefits of auditor rotation, in light of "additional financial costs and the loss of institutional knowledge of the public company's previous auditor of record, are harder to predict and quantify." In short, the costs of auditor rotation will outweigh the benefits, and may not improve the quality of financial statements. You may download a PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. of the report at www.gao.gov/new.items/d04216.pdf. SOCIAL STUDIES? Corporate social responsibility disclosure through annual "social reports" will grow in '04 and emphasize ethical codes Noun 1. ethical code - a system of principles governing morality and acceptable conduct ethic system of rules, system - a complex of methods or rules governing behavior; "they have to operate under a system they oppose"; "that language has a complex system and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. . Equation Research |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion