Accounting Quality, Auditing and Corporate Governance
26 Pages Posted: 2 Mar 2003
Date Written: January 2003
This commentary provides an analysis of past and present dimensions of accounting, auditing and corporate governance that have led to the currently troubling state of affairs in the financial reporting environment. It offers specific recommendations for addressing the current problems designed to enhance the quality and integrity of the financial reporting environment. It argues that substantive changes in corporate governance are necessary before meaningful improvements can occur in accounting and auditing. Until corporate boards are truly independent of corporate management and are knowledgeable enough to act as effective shareholder advocates, changes in accounting and auditing will be of limited impact. The commentary hopes to stimulate meaningful debate and change related to improving accounting quality, auditing and corporate governance.
JEL Classification: M41, G34, M49
Suggested Citation: Suggested Citation