February 23, 2006
Canadians Weigh In on Auditor Oversight
Canadian Think Tank Calls for Auditor Oversight Reform
Maybe there is hope for Public Companies and their Auditor Chill issues. The Canadian Thinktank might have a point about the harsh approach of the PCAOB. But an important consideration is that the litigation environment in the US causes Auditors to act in a more cautious manner than in Canada. So there is bound to be a difference in oversight between the countries.
An excerpt from an article here:
AccountingWEB.com - February 23, 2006 - A Vancouver-based economic think tank has called for reform of the watchdogs overseeing the North American auditing industry.
The Fraser Institute released a report on Monday that says the Canadian Public Accountability Board (CPAB) is too easy on accounting firms, and the Public Company Accounting Oversight Board (PCAOB) in the U.S. is too strict. While Canada relies on self-regulation, the U.S. depends upon government regulation.
In the report, called "The Regulation of Public Auditing in Canada and the United States: Self-Regulation or Government Regulation," the Fraser Institute seeks a middle ground, CBC News reported. Regulations in Canada can be improved without enacting overly tough, U.S.-style rules, the think tank contends.
"Striking the appropriate balance among market-based, legal, and self-regulatory mechanisms is a delicate task," said professor Adam Pritchard of the University of Michigan Law School and a co-author of the study."
The CPAB swiftly responded to the study by calling it “misinformed and misleading". For the complete article, click here
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