The Ethics Of The Accounting Establishment : The 1970 's The Moss- Metcalf Report

1185 Words Nov 19th, 2015 null Page
In the 1970’s the Moss- Metcalf Report which was also referred to as the The Accounting Establishment was published by Congress and The Commission addressed concerns regarding the freedoms of auditors. This was the result of numerous financial reporting errors. In 1977 the Subcommittee on Reports, Accounting and Management of the Committee on Governmental Affairs published a report that stated "The accounting profession must improve its procedures for assuring independence in view of the public 's needs and expectations." It added, "The best policy . . . is to require that independent auditors of publicly owned corporations perform only services directly related to accounting." (sec.gov) Moss and Metcalf recommended for the SEC to take control of the accounting standards for public businesses, thus removing private firms from standard setting, after they both published reports claiming that major firms lacked independence from clients while monopolizing the auditing of large corporations and the standards setting practices. (sec.gov). Also in 1977 The Foreign Corrupt Practices Act (FCPA) was passed. The purpose of the act was to address corruption and bribery in foreign businesses by implementing internal controls. The Act did much to address corruption but fraud was still prevalent in the financial community. (Cite)

Despite the government’s best efforts to combat corruption and fraud in the business and financial communities, it was still prevalent. Company…

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