A Future CPA Wants to Know

BY BARTH JONES

As a recent entrant into the accounting field, I do not write as an expert but as an eager student.

With all the Enron trouble and other scandals triggering Sarbanes-Oxley and various other reforms, why is there no requirement by the SEC or other corporate governance mechanism that public companies engage more than one competing CPA firm in the issuance of the audit report? This seems to make the most sense to ensure an adequate system of checks and balances. Perhaps there should be a primary auditor to perform the audit and a secondary auditor, a competitor, to approve the working papers and final audit report. It seems the accounting profession needs to expand its current system of peer review. Aren’t checks and balances in order here?

Barth Jones
Pittsburgh

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.

FEATURE

Tackling TCJA changes this tax season

Return preparers must be ready for how the Tax Cuts and Jobs Act has modified many common features of individual and business returns.