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 financial 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.