Wed June 22, 2011
We currently have a Management Discussion and Analysis in annual reports. Now the PCAOB suggests
a Auditor Discussion and Analysis. This idea would have auditors expressing opinions of financial management of the firm.
It is hard to me to see how this will work when the firm employs the auditor. As the article says, it is pass fail at the moment, the auditor says the statements fairly reflect the firm position or they don't.
This would be like asking your best friend to analyze your hair do or wardrobe, how long would that friendship last?
I am going to suggest this for an article on the discussion board.
Professor Elam 
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