In particular, its responsibilities include: responsible for registration of auditing the accounting firm who engaging in the securities market business; undertaking the inspections, investigations and penalties of auditing the accounting firm who engaging in the securities market business; developing or using directly audit criteria, quality control guidelines and ethical codes of practice which are established by the Institute of Certified Public Accountants. It should be noted that the Public Company Accounting Oversight Board play a unplaced role to improve the independence of financial information and the career management practices under capital globalization. (Hirschman,1982)
The bill proposes measures of strengthening the independence of CPAs:
1. Amended in 1934, "Securities and Exchange Law" ,prohibit Accounting firms implemented the audit of public companies providing audit clients non-audit services which are included in the prohibited list, non-audit services which are not explicitly included in the prohibited list should get prior approval from the company's audit committee before be given .
2. The audit partner and reviewing partner must rotate five years, auditors have to report to the company's audit committee.
3. If the company Chief Executive Officer, Chief Financial Officer, the Chief Council of the Accounting Officer and other senior managers have worker in a the accounting firm, the firm is prohibited to provide statutory services to the company.
4. Instructed state regulators to decide the whether related standers of Public Company Oversight Board is applicable to mall and medium firms which do not registered with the Commission
Future
It can be said that Enron scandal taught the whole accounting profession accounting profession. Although the audit system has undergone great changes after Enron scandal, assessment system of auditors have not changed a lot with the regulatory regime, which means the vocational and technical requirements remains the same with before. the specific work content of auditors should not change a lot. Regime changes are mainly to strengthen the auditor's professional ethics standards, auditors should have a strong social responsibility, remain fair, impartial and fair attitude in the course of their work. Besides in order to improve public image of accounting firms, auditors should communicate with the general public and enhance public’s confidence.
Reference
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Bazerman, M. H., Morgan, K. P., & Loewenstein, G. F. (1997).‘The impossibility of auditor independence’, Sloan ManagementReview, 3(8),89–94.
Borkowski, S. and Ugras,Y.J. (1998). ‘Business Students and Ethics:AMeta-Analysis’, Journalof Business Ethics, 17(11),1117–27.
Coleman, M., Jerry K., and Sheldon L. (2004). ‘The New Scarlet Letter:Student Perceptions of the Accounting Profession After Enron’,Journal of Education for Business January/February , 7 9(3), 134–41.
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