IFAC president warns against auditor
rotation…
Forum tackles going concern…
US IFRS convergence to take 10-15 years:
Herz…
AUDITOR ROTATION
IFAC president
warns against auditor rotation
Mandatory auditor rotation makes no sense, according to
International Federation of Accountants president Robert
Bunting.
“While firm rotation might seem to
remove any bias that may be attached to past decisions, it makes no
sense at all,” Bunting said. “In most parts of the world there are
not enough choices to allow for this without forcing companies to
choose audit firms that have no expertise in their industry.”
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By GlobalDataBunting said a number of countries
have experimented with mandatory rotation before abandoning it as
almost impossible to implement. Yet, it is still being considered
as a remedy to the Satyam scandal in India.
GOING CONCERN
Forum tackles going
concern
Going concern and related audit
considerations dominated a recent Forum of Firms symposium in
London.
The symposium featured panel
discussions on topics including clients’ access to funding and
financial statement and audit report implications related to going
concern. Audit considerations such as valuation and impairment,
materiality, and internal controls were also debated.
The symposium was attended by more
than 70 partners and senior executives from 24 international
accounting networks.
CONVERGENCE
US IFRS convergence to take 10-15
years: Herz
Financial Accounting Standards Board
chairman Robert Herz has said US GAAP convergence with IFRS could
take 10 to 15 years, according to media reports.
Speaking at this month’s Financial
Crisis Advisory Group (FCAG) meeting in London, Herz made the
comment when asked about a time frame by FCAG co-chair and former
commissioner of the US Securities and Exchange Commission Harvey
Goldschmid.
Attendees are said to have been
surprised by Herz’s comment as it falls well outside the time frame
issued under the Norwalk Agreement, a memorandum of understanding
between the FASB and International Accounting Standards Board
(IASB), which calls for the completion of all major joint projects
by 2011. IASB chairman David Tweedie noted it took 12 years to
develop IAS 39, the standard covering financial instruments, so
developing a single, simpler set of standards could not be
rushed.
