The Corporate Counsel.Net recently asked readers, ” What is the common practice when an independent auditor asks a client to review their board minutes?”
I have answered the poll as I believe one of my former clients would have. Full access.
Per Broc Romanek, there have been 168 responses to the poll, including mine, thus far.
This former client, still completing several years of restatements, having made a fairly recent change in auditors, subject of internal and SEC investigations, defendant in more than a few lawsuits, and the recipient of assorted Sarbanes-Oxley material weakness and significant deficiencies, has no choice but to do whatever their new auditor asks. I believe their auditor has them by the short-hairs.
However, it looks like there are more than a few companies, more than 65% of the respondents to the poll, that believe that keeping information from their external auditors, perhaps under the guise of privilege, is ok and good policy.
Who, in heck’s name, are their auditors?
To take the poll, go to The Corporate Counsel.Net