More regulation expected in the wake of economic crisis

The crisis is expected to increase scrutiny of accountancy firms Written by Nick Huber Accountancy Age The global economic crisis will result in more regulation of accountants and slow moves towards global accounting standards, experts have predicted. As the banking crisis deepened this week academics said the economic fallout could have far-reaching implications for the profession. Some pointed to parallels with previous economic crises and corporate scandals when governments pushed though regulation of the accountancy profession in an effort to restore order. But, on a brighter note, experts said the current economic crisis was unlikely to trigger a wave of litigation against auditors of collapsed firms. Prem Sikka, professor of accounting at Essex Business School, said: ‘I expect accounting and auditing standard setting to... [read full story]