So says Peter Wyman, head of professional affairs at Pricewaterhouse Coopers, UK. In a recent interview, Wyman called existing company audit procedures inadequate and states that executives could indeed be using loopholes in the existing law to thwart regulation:

“At the level of an Enron or a WorldCom, I am pretty confident that the auditors would stumble across it in two or three years, but one would have no real confidence that they would come across it in year one unless they were incredibly lucky or the management made a mistake. The audit is simply not designed to deal with that.”

Read the rest of the Wyman interview via The Business. For more, check out his column from the CPA Journal.

-- MDT

Labels: accounting fraud, Enron, PWC, regulation