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Taking stock at the PCAOB: in an interview, the PCAOB's chief auditor, Douglas R. Carmichael, reviews the agency's recent actions and the evolving regulation of accounting firms.(regulation)(Public Company Accounting Oversight Board)(Interview)

The accounting industry has come under withering criticism in the wake of recent corporate scandals--not surprisingly, since the scandals at Enron Corp., WorldCom Inc., Adelphia Communications and elsewhere have involved accounting fraud. The accounting firms have been accused of covering up their clients' sins, or perhaps worse, being unable to detect the fraud in the first place. The scandals have decimated their ranks, even claiming the life of Arthur Andersen LLP.

In some respects, the accounting firms have been hostage to the companies that engaged them originally for audit work. Lately, headlines have been full of cases questioning auditor independence, arising from ...

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