Accounting Threat

        Regulatory oversight and change is the most important issue currently facing the accounting profession.
       Large-scale changes, such as the proposals by the European Commission and the PCAOB to reform audit firm rotation and the auditor’s report have potentially far-reaching implications on audit quality and competitiveness in the accounting industry. I believe that any new regulation needs to be studied carefully to ensure it will truly enhance audit quality and will not have unintended consequences for our profession or the investors and businesses we serve. In addition, we need to ensure that regulation is not so restrictive that it damages the audit profession’s Advertisement
     Overall, I think the regulators for our industry both here and abroad take the approach of seeking input from many parties prior to enacting new regulations, and I believe it is important that these activities continue. However, I ultimately don’t believe independence, skepticism and objectivity can be legislated. Quality, objectivity and ability to be competitive or to maintain its status as a sought-after career alternative for the best and brightest students.integrity are values that auditors have embraced for many years and ones that have enabled our profession to be one of the most respected. To further embed these values at McGladrey, we recently created a new professional judgment framework with three professors from the Brigham Young University School of Accountancy. All assurance professionals have received a printed copy and are being trained in the framework this year.
In addition to the regulation of our own industry, the significant number of new regulations that affect the clients and industries we serve could also have huge implications for McGladrey and other accounting firms. We have to stay abreast of the changing regulations in our clients’ industries and align our work products and advice accordingly. In addition, we expect to see an increase in...