Accountants have been on high alert in the post-Enron work environment, but experts say that while accounting has improved, fundamental problems remain.
The Sarbanes-Oxley Act of 2002 has required tight internal controls over financial reporting, better documentation and in general, more accountability.
But some observers point out that, in effect, the fox is still watching the hen house. As long as the accounting firms are paid by the companies they audit, scandals will continue, New York Times columnist Joseph Nocera suggests. Some observers have proposed that audit fees be pooled and then distributed to the accounting firms by an independent body, such as the Securities and Exchange Commission or the New York Stock Exchange.
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