| aml1205 |
|
Jun 30, 11, 09:32PM
| #1 |
Joined: May 10, 11
Threads: 16
Posts: 17
|
The aim of this article is to inform the reader of the legal developments which impact the liability of auditors within and outside the U.S.; to understand the rationale for changes in accounting practices; and to understand the consequences of allowing private anti-fraud claims.
In the 2010 case of Morrison vs. National Australia Bank, the U.S. Supreme Court limited the
extraterritorial powers of the Security and Exchange Commission. This led to the dismissal of
many important claims against member firms outside the U.S. Then comes along the Dodd-
Frank Wall Street Reform and Consumer Protection Act.
Auditors oppose the Dodd-Frank act, which threatens to allow the United States and the S.E.C. to initiate claims on securities fraud taking place outside U.S. territory. The same act has authorized the S.E.C. to determine whether or not, and to what extent, private persons should be allowed to make such claims. The intent of the act is to protect investors and the integrity of the U.S. market from the security transactions conducted beyond the borders.
However, auditors oppose the steps of the Dodd-Frank act on the following grounds:
There is no need to expose the non U.S. counterparts of accounting firms to U.S. private
litigation. The former are under the extensive control of the accounting firms in the home
country, and below par auditing is easily detected and punished. There is no evidence of
any negligence to justify the need for private liability.
The U.S. stands to supersede the policies and regulative measures being imposed by other
countries by extending a private right of action under U.S. law. This is a threat to
jurisdiction which could affect cross border cooperation.
Extraterritorial private law suits can discourage investors because of increased costs and a
greater need for auditing services. This could further lead to decreased competition in the
market.
Furthermore, auditors argue that litigation in catastrophic proportions could be avoided if the following conditions were to be met:
The S.E.C. needs to be more vigilant and needs to bring charges against auditing firms
and their partners upon acquiring knowledge of auditing and abetting frauds.
The U.S. auditing firms and their non U.S. counterparts must disclose the amount of
litigation they are being subjected to, as well as their funds, and sources of funds, to
cover such litigation.
The arguments posed by the auditors were branded to be selfish; that such arguments were
intended to protect themselves and not the interest of public company shareholders. But after everything is said and done the main issues remain: who should be liable for audit failures and how to run after them. In conclusion, it seems the only point of agreement is that the lack of regulation and enforcement cannot continue without expensive consequences.
Reference:
Mckenna, F. (2011). Auditors Abandon Investors On Liability Limits retrieved March 12, 2011 from http://blogs.forbes.com/francinemckenna/2011/03/10/auditors-abandon-investo rs-on-liability-limits/
|
|
| Loopy |
|
Oct 30, 11, 10:16PM
| #2 |
Joined: Oct 30, 11
Posts: 9
|
Does anybody have an assignment in project management or procurements which they can upload plz ?
|
|
| pheelyks |
Writer |
Oct 30, 11, 10:41PM
| #3 |
Joined: Jan 20, 09
Threads: 8
Posts: 3,796
|
You're in the wrong place, Loopy.
|
|
| Loopy |
|
Oct 31, 11, 12:36PM
| #4 |
Joined: Oct 30, 11
Posts: 9
|
Where am i supposed to be ? Can you direct me to the new link ?
|
|
| pheelyks |
Writer |
Oct 31, 11, 12:37PM
| #5 |
Joined: Jan 20, 09
Threads: 8
Posts: 3,796
|
I don't know where you should go to ask for people to send you their work. I do know that this forum isn't the place.
|
|
| Loopy |
|
Oct 31, 11, 12:44PM
| #6 |
Joined: Oct 30, 11
Posts: 9
|
Strange. It said free essays forum so I assumed people paste their old essays here
|
|
| pheelyks |
Writer |
Oct 31, 11, 12:53PM
| #7 |
Joined: Jan 20, 09
Threads: 8
Posts: 3,796
|
Did you click the "Free Essays" button and read the large text that appears on the page? This section is for writers who have been scammed, so they can post their work in an attempt to keep it from being plagiarized. It isn't somewhere people come just o post essays, and it certainly isn't a place where you can request free essays. The fact that the name of the site is EssayScam should have given you a clue.
|
|
| Loopy |
|
Oct 31, 11, 09:10PM
| #8 |
Joined: Oct 30, 11
Posts: 9
|
okay, understood
|
|
| pheelyks |
Writer |
Oct 31, 11, 11:04PM
| #9 |
Joined: Jan 20, 09
Threads: 8
Posts: 3,796
|
Good. See you later (or not, if we're lucky).
|
|
