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Unité, Clarité, Fraternité?

 

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David Reilly is on a FAS 157 tear. Appearing on the right column of C1 in yesterday’s Wall Street Journal, Mr. Reilly penned an article about the newly formed Center for Audit Quality, an industry group that has “emerged as the voice of the Big Four.” It’s a nice quick read, so look it up and digest it.

Apparently the move to create the CAG has been somewhat controversial – after all, who needs another standards-interpreting body? I’ll be the first to say “We do!” We have the FASB to establish the standards, and the SEC to enforce them. Yet the “first line of defense,” the audit firms themselves, have not always been in perfect accord. In fact, in our little sliver of the industry, we’ve found quite the opposite to be true. My personal opinion is that this is one situation where authoritative bodies with disparate interpretations of highly nuanced standards will benefit well from locking arms. It’s quite a murky world in here, after all. The more unity, the more clarity, the more certainty, the better!

See “With New, United Voice, Auditors Stand Ground On How to Treat Crunch”, Wall Street Journal, October 17, 2007, by David Reilly.

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