BBC NEWS
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC News UK Edition
 You are in: Business  
News Front Page
World
UK
England
N Ireland
Scotland
Wales
Politics
Business
Market Data
Your Money
E-Commerce
Economy
Companies
Fact Files
Entertainment
Science/Nature
Technology
Health
Education
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
CBBC News
SERVICES
-------------
EDITIONS
Thursday, 20 June, 2002, 20:48 GMT 21:48 UK
US gets tough on accountants
The US financial watchdog is to set up a new body to oversee the accounting industry.

The decision comes after regulatory bodies were heavily criticised for failing to intervene in the Enron/Andersen scandal.

The government is desperate to avoid a repeat performance, and to restore investor trust in corporate America.

Energy giant Enron collapsed late last year after admitting that it had vastly overstated its results for five years.

Andersen, the auditor in charge of approving Enron's accounts, was heavily criticised for failing to flag up irregularities in the energy firm's books.

Accountants at work

The proposed body will have the authority to discipline audit firms guilty of misconduct by imposing fines or suspending them.

Three of the nine places on the board will be allocated to the audit industry.

While the three non-independent board members will not vote on disciplinary issues, practising accountants are likely to carry out much of the fieldwork leading to other sanctions.

US Congress has also been trying to pass legislation to beef up oversight of the accounting industry.

The new body will be called the Public Accountability Board (PAB) and will come under the umbrella of the Securities and Exchange Commission.


The trial

The disintegration

Background

IN-DEPTH
See also:

17 Jun 02 | Business
15 Jun 02 | Business
04 Jun 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | World | UK | England | N Ireland | Scotland | Wales |
Politics | Business | Entertainment | Science/Nature | Technology |
Health | Education | Talking Point | Country Profiles | In Depth |
Programmes