​Lynn Turner Testifies Before Congress on Role of External Auditors and Others in Financial Crisis​

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​Lynn Turner is highly respected for his prior positions, including as Chief Accountant at the SEC. His testimony makes very interesting reading. For example:

  • He points out that few (23% per the PCAOB) investors seem to be finding much value in the audit report.
  • He believes the audit firms failed to warn of off-balance sheet and other risks and uncertainties.
  • In his opinion, the process for developing accounting standards is flawed and slow.​

​I continue to believe that the root of the "problem" — in terms of whether the external auditors failed or not — is that these days U.S. auditors only really provide an opinion on compliance with US GAAP. They are not required to assess whether the finan​cial statements provide a true and fair view of the financial condition and results of operations.​

While the role of the external auditor is under review, I don't have a lof of confidence that the root cause is understood and will be solved.

I welcome your opinions.​

 

 

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