The Treasury Advisory Committee on the Auditing Profession was appointed by U.S. Treasury Secretary Henry M. Paulson, Jr. to examine the auditing industry’s concentration, financial soundness, audit quality, and employee retention so as to make recommendations for strengthening the auditing profession. The Committee held its inaugural meeting on October 15 and began to identify issues that audit firms face today. Issues discussed included:
- Finding experienced accountants.
- The need to increase competition among audit firms. Currently the industry is dominated by the four largest firms, which audit about 80 percent of all U.S. public companies.
- Liability risks in the face of lawsuits by investors and companies.
- Difficulty getting insurance because of the liability risks.
These issues, among others, will continue to be discussed by the committee, which hopes to make its recommendations by next summer. Bill Travis, McGladrey & Pullen, LLP board member, is one of the 21 people appointed to this committee. |
