Summary
The Securities and Exchange Commission requires publicly held companies to file annual 10-K forms. Many banks, investors and other institutions place similar requirements on their clients. These reports include a company’s financial statements, which are audited by an outside accounting firm.
During an audit, the lion’s share of critical work on the ground is done by children. The accounting profession’S desperation to find recruits has added more tasks on the shoulders of an already exhausted staff. The relationships between accounting firms and their clients also raise flags.
Our accounting profession is professional, trustworthy and credible, says Gene Marks. But it’s time to take another look at how audits are done, he says. Marks: Auditing firms should be disallowed from providing any other service to a client other than their audits.
