Questão 568855

Shining a light on the auditors

1 ___________ Every financial meltdown prompts a hunt forEvery financial meltdown prompts a hunt for

scapegoats. In the wake of the most recent one, calls to reform

accounting have grown particularly loud, and action is on the

4 way. In the coming months both America and the European

Union are expected to introduce new rules aimed at enhancing

auditors’ independence. But for all the heated debate over the

7 changes, any improvement is likely to be modest.

___________ America’s bean-counters were effectively

self-regulating until 2002. That year, following a wave of

10 accounting scandals, Congress passed the Sarbanes-Oxley act

to reform corporate governance. It limited the consulting work

firms could do for their audit clients and set up a new regulator,

13 the Public Company Accounting Oversight Board. At a

meeting on December 4^th it outlined three policies it expects to

implement by the end of 2014.

16___________ One aims to make audit reports more useful by

requiring a section highlighting “critical audit matters” — the

high-stakes judgment calls that keep accountants up at night,

19 such as how the business being audited has valued its

intangible assets. Another would cut the share of an audit that

accounting firms can outsource without disclosure from 20%

22 to 5%. Such information is valuable in emerging markets,

where local accountants vary widely in quality. The most

controversial reform would identify by name the lead partner

25 responsible for each audit.

___________ Although identifying partners does not increase their

legal liability, it does put their reputation on the line. This

28 seems to make accountants more cautious.

The Economist, December 7th 2013, p. 68 (adapted).

Judge the items below, based on the text above.

The idea expressed in the second paragraph can be correctly explained by the following sentence: In 2002 a draft bill was voted by the American Congress proposing the setting of enhanced standard for all US state-owned-company boards, management and public accounting firms.