Sarah Johnson, CFO.com | US
February 23, 2007
Tax Simplification always produces more complex tax code. This rule was explained to me by a senior partner in tax consultancy. Why always? Easy. Tax law is produced by tax experts. They thrive on its complexity. Likewise, AS5 will inevitably lead to higher audit fees. Why? The same dynamics are in play.
If you enjoy irony, you will remember how sarbox came to be. It was from egregious audit behavior. Now who has benefitted most by it? Auditors, of course. Their skyrocketing fees have been well-documented here at CFO.com. And what an incredible surprise!
Back to AS5, who dominates the PCAOB? Auditors, again. Now just whom might we imagine, from a cynics perspective, that AS5 will benefit? Time will tell, but I'm taking book. Wanna bet?Posted by George Brown | Feb 23, 2007 9:32 PM ET
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