For the record, I am not advocating that Ernst & Young should bite the dust. My interest is academic. If Ernst & Young bites the dust, then I want to know about it and talk about it.
What I am advocating is that the system should be changed. Many audit firms consider themselves to be a partner with corporate management as they report financial statements. Consequently, these audit firms allegedly fail to qualify their audit opinions for many observed irregularities. By doing so, they put investors at risk, they put the market at risk, they put citizens at risk, they put the country at risk.
I would be happiest if the firms would simply stop this dysfunctional behavior and partner no more. Although the firms are paid by the corporations, they should be working on behalf of investors and the market and citizens and the country.
Now, if that doesn’t happen, then maybe we need a new system.
Debit and credit – – David Albrecht