Global Capital Markets and The Global Economy

For some interesting reading see the following:

DiPiazza, S. A., D. McDonnell, W. G. Parrett, M. D. Rake, F. Samyn and J. S. Turley. 2006. Global Capital Markets And The Global Economy: A Vision From the CEOs of the International Audit Networks. Global Public Policy Symposium - www.globalpublicpolicysymposium.com.

I think a few statements in this paper will generate a lot of controversy. The first statement is on page 4 of the executive summary.

"Audit firms and their global networks are not insurance companies. Legal and regulatory systems must reflect this reality. Individual auditors who engage in wrongdoing must be punished but without threating the financial viability of their firms."

The following statements are on page 15 of the full paper:

"Focus Enforcement: It is essential, going forward, for enforcement authorities to focus penalties for any auditor wrongdoing or negligence they may uncover on those directly implicated in such activities, rather than on the entire firms that employ them or with which they may be affiliated. That the current audit services market is competitive does not mean that it can afford to lose another major network, through a liquidation-forcing liability verdict or criminal procecution. Indeed, there now is widespread recognition throughout the global enforecment community that the loss of another major audit network would have a major deleterious impact on the capital markets."

"Liability Reform: In a related vein, measures to limit firms' exposure to liability would reduce the risk that all firms, and especially smaller audit firms, have in taking on large company audit assignments. Thus, meaningful liability reform should reduce concentration in the audit services market."

Accountants and Politics

I believe many people vote without really knowing what they believe or what they are voting for or against. They think they agree with one party or the other on a couple of issues, but don't really know what their postition is on most of the issues, or what the politicians' positions are on most of the issues. So where do accountants fit in on the political compass and where do you fit in? Go to my political issues page (http://maaw.info/PoliticalIssues.htm) and consider the issues. Then take the test on the political compass site to see where your answers put you on the political grid. After you take the test, come back and tell us what you think of the political compass and the exercises in my note.