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NCJ Number: 65581 Add to Shopping cart Find in a Library
Title: ACCOUNTING AND AUDITING PRACTICES AND PROCEDURES - HEARINGS BEFORE SUBCOMMITTEE ON REPORTS, ACCOUNTING AND MANAGEMENT, 1977
Corporate Author: US Congress
Senate Cmtte on Governmental Affairs
United States of America
Date Published: 1977
Page Count: 2176
Sponsoring Agency: Superintendent of Documents, GPO
Washington, DC 20402
US Congress
Washington, DC 20510
Sale Source: Superintendent of Documents, GPO
Washington, DC 20402
United States of America
Type: Legislative/Regulatory Material
Language: English
Country: United States of America
Annotation: TESTIMONY BEFORE THE SENATE SUBCOMMITTEE ON REPORTS, ACCOUNTING, AND MANAGEMENT SPEAKS TO THE NEED FOR FEDERAL LEGISLATION TO IMPROVE THE QUALITY OF AUDITING OF LARGE PUBLICLY-OWNED CORPORATIONS.
Abstract: MUCH OF THE TESTIMONY CONSISTS OF PRO AND CON STATEMENTS ABOUT THE SUBCOMMITTEE'S STAFF STUDY, 'THE ACCOUNTING ESTABLISHMENT.' THE REPORT, WHICH WAS COMPILED AFTER A YEAR'S STUDY OF THE DYNAMICS OF ACCOUNTING AND AUDITING STANDARD-SETTING, CONCLUDES THAT THE GOVERNMENT'S EXISTING STATUTORY AUTHORITY TO SET STANDARDS FOR FINANCIAL REPORTING BY LARGE PUBLICLY-OWNED COMPANIES THROUGH THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS BEEN GIVEN TO PRIVATE-SECTOR ACCOUNTING BODIES. THIS PRACTICE IS BELIEVED BY THE SUBCOMMITTEE STAFF TO PRODUCE BIASED STANDARDS THAT DO NOT SERVE ALL THE INTERESTS OF GOVERNMENT POLICYMAKING AND THE PUBLIC. STANDARD-SETTING BY A GOVERNMENT BODY IS RECOMMENDED. TESTIMONY FROM REPRESENTATIVES OF ACADEMIA, THE SEC, AND PERSONS SERVING IN VARIOUS CAPACITIES IN THE ACCOUNTING PROFESSION ARGUE PRO AND CON REGARDING THE STAFF'S FINDINGS AND RECOMMENDATIONS. THOSE ARGUING FOR THE REPORT'S RECOMMENDATIONS TEND TO SEE AN UNHEALTHY ONGOING INTERACTION BETWEEN THE EIGHT LARGEST ACCOUNTING FIRMS AND LARGE, PUBLICLY-OWNED CORPORATIONS THAT ARE THEIR CLIENTS, SUCH THAT INDEPENDENT AUDITING IS COMPROMISED. AN INDEPENDENT FEDERAL BODY TO SET STANDARDS IS VIEWED AS A REMEDY FOR THIS. THOSE CHALLENGING THE REPORT ARGUE THAT THE EXISTING SYSTEM WHICH BASES STANDARD-SETTING IN THE PRIVATE SECTOR WITH SUPERVISION FROM THE SEC HAS BEEN GENERALLY EFFECTIVE AND SHOULD CONTINUE AS THE STRUCTURE FOR IMPROVING STANDARDS. WRITTEN STATEMENTS AND SUPPLEMENTARY MATERIALS ARE INCLUDED.
Index Term(s): Accounting methods; Auditing standards; Legislation; Testimony
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=65581

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