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December 20, 2022

Reuters

Since Erica Williams began her role as chair of the Public Company Accounting Oversight Board, the agency continues intensifying enforcement activities.

Richard J. Morvillo, Partner and Co-Chair of Stroock’s White Collar & Internal Investigations practice is among those who believe it would be most effective if the agency deployed a more balanced approach between inspection and enforcement.

In an recent article for Reuters, he states, “… the enforcement function needs to be balanced with the supervisory function. And I think that they’re going in the wrong direction by emphasizing the enforcement side of things when there is anecdotal evidence that audit quality has improved through inspections.”

Conceding that a tough enforcement program can send a message he continues, “I think the inspections already create an environment in which the firms are trying their best to promote good audit quality. Making individuals responsible for errors in judgment is not conducive to developing the highest professional standards.”

Read the full article here.

December 20, 2022

Reuters

Since Erica Williams began her role as chair of the Public Company Accounting Oversight Board, the agency continues intensifying enforcement activities.

Richard J. Morvillo, Partner and Co-Chair of Stroock’s White Collar & Internal Investigations practice is among those who believe it would be most effective if the agency deployed a more balanced approach between inspection and enforcement.

In an recent article for Reuters, he states, “… the enforcement function needs to be balanced with the supervisory function. And I think that they’re going in the wrong direction by emphasizing the enforcement side of things when there is anecdotal evidence that audit quality has improved through inspections.”

Conceding that a tough enforcement program can send a message he continues, “I think the inspections already create an environment in which the firms are trying their best to promote good audit quality. Making individuals responsible for errors in judgment is not conducive to developing the highest professional standards.”

Read the full article here.

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