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"legal shield" for accountants

Some more legal protection for accountants is on the table to be passed this month. The more CYA for us, the better, it's almost impossible, given the time we spend on clients, to dig into every nook and corner and find mistakes/frauds that some dumb nuts at these companies commit. ..


By Judith Burns
Dow Jones Newswires
February 27, 2008
Consumer and investor advocates raised concerns Wednesday about giving new legal protections to accountants who can show they used "reasonable" professional judgment in reviewing a company's books.
An advisory committee to the Securities and Exchange Commission headed by MFS Investment Management Inc. Chairman Robert Pozen recommended such an approach in an interim report this month. The Pozen committee is slated to issue its final report to the SEC this summer.
The idea: have the SEC and the Public Company Accounting Oversight Board establish a clear list of do's and don'ts on exercising professional judgment, and create a "safe harbor" that protects accountants and auditors who follow the framework from SEC enforcement actions or private lawsuits.

Comments

This is good to know especially for those accountants for their own good and protection when it comes to reviewing company's book
Bryann said…

Your Blog gave us useful information to work. You have done an amazing job! I share this to my friends.
Chartered Accountants in Dubai

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