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Interesting, but I would personally like to leave the government out of this (let's not introduce deeper/political conflicts of interests). What about just sta
by zepearl 6y ago
Interesting, but I would personally like to leave the government out of this (let's not introduce deeper/political conflicts of interests).
What about just standardizing the fees charged for audits and doing a fixed rotation (rotate e.g. once every 4 years) of assignments of auditing companies to clients (companies being audited)?
This way on one hand the conflict of interest by paying megabucks to auditing firms (to get a positive audit outcome) would vanish (as the fees would be fixed), on the other hand a auditing companies would lose the tendency to try to stick to a particular client (by providing positive audit outcome).
- baq 6y agoOr we could disentangle government from regulator. The market needs rules and enforcement, maybe the government could pay a private regulator to some of that.
- TT3351 6y agoThe government can at least ideally be replaced/restructured popularly when it gets its hands dirty with conflicts of interest. The redress for private corruption is much less powerful. I don't understand why it's so often taken as a truism that somehow introducing privatization or profit motive will improve a given problem; I would have hoped by now the numerous flaws in that approach would be apparent.
- zodiac 6y agoHow do I sign up to be an auditing firm?