You knew this would happen. With auditor Grant Thornton failing to detect the related party transactions sloshing through Refco’s accounts, the Public Company Accounting Oversight Board will be looking into rewriting some of the auditing standards for examination of insider dealings.
The Financial Times reports today that “Douglas Carmichael, chief auditor at the Public Company Accounting Oversight Board, which supervises auditors of public companies, said it would consider the case for strengthening the practice rules on the confirmation procedure as part of its review of auditors’ responsibilities to detect fraud… The PCAOB could make its work on fraud and the confirmation procedure a priority for 2006.”
See full Article.
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