'The profession is better managed today than ever before. But once again, this is a moving target' - Levitt
Former SEC chairman Arthur Levitt has suggested that the market has place for an 'audit only' firm.
In an interview with Dutch magazine de Accountant, Levitt said that in order to mitigate the risk of an Andersen-like collapse of the one of the Big Four, the US Treasury's Advisory Committee on the Audit Profession will propose 'a custodial arrangement whereby if a major firm gets into trouble the PCAOB will have the ability to take it over and, almost in a bankruptcy mode, run the firm in an orderly way.'
Speaking about the factors behind the subprime credit crises, Levitt said that unlike the late nineties, auditors were 'not at the head of the pack of wrongdoing' this time.
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