I was quoted this morning in the Financial Times subscription only publication, Agenda. It is directed at members of Boards of Directors.
Would public companies keep improving their financial reports were both the PCAOB and Sarbanes-Oxley to be closed down even temporarily?
Probably, says an internal audit and corporate governance consultant. While a temporary vacuum in regulations “would be a huge advantage” for firms, says Francine McKenna, president of McKenna Partners, they would still enforce high-quality internal controls to stay clear of shareholder lawsuits.
Meanwhile, McKenna explains that even when an auditing client switches its accounting firm, the new auditor usually requires the manager to make the same changes in accounting treatment or restatement that the previous firm had required.