What steps should be taken to build a more robust accounting profession?
Schroeder: To build a more robust accounting profession it is important to: 1) Attract the best accounting students to accounting firms, where now it seems many recent grads are focusing their career paths toward the financial industry, 2) have liability caps be institutionalized, and 3) develop standards that are less complex. Editor: How do you go about looking into the integrity of management whose statements you must rely on to do the audit? Schroeder: Our client acceptance process begins with a thorough background check on the company and its management team. The first key step of our audit process is to understand and assess the adequacy of entity or management level controls that serve to prevent and detect errors or fraud. So we look closely at the role of the audit committee and board oversight, we look at the role and the capabilities of the CEO and CFO to oversee the entire financial process. We try to understand the nature of a business and status of its financial situation
