If there's one thing that you can count on when regulators propose rules that will shake things up a bit, it's a whole-hearted opposition from the U.S. Chamber of Commerce. The Chamber's Center for Capital Markets Competitiveness's comment letter for the Concept Release was 20 pages long and is summed up quite well by this passage:
CCMC notes that the Concept Release gives short shrift to activities by other audit standard-setters related to auditor reporting and fails to provide any comparison of relevant portions of PCAOB auditor reporting standards with those of the [AICPA's Auditing Standards Board] and [International Auditing and Assurance Standards Board] as part of considering improvements to PCAOB auditing standards. The CCMC encourages the PCAOB to reconsider the "go it alone" approach to audit standard setting.
In other words, "Government Regulator = Bad; Government Regulator + Heavy-handed Industry Trade Organizations = Good!"
But yesterday, all we could find is this pathetic excuse for a statement from a special-interest-group-that-opposes-any-and-all-regulation
"This is a fundamental change that can harm both businesses and investors alike, and may drive up liability for management and auditors," said Tom Quaadman, vice president of the Chamber's Center for Capital Markets Competitiveness.
Pretty weak sauce, guys. What is that, the "PCAOB statement" template you used there? Hope you bring your A-game when you submit your comment letter.
Audit Reports Add Beef [WSJ]
CCMC Comment Letter [PCAOB]
The dynamics at both the PCAOB and the Big Four are horrible. The incentive at the Big Four is to keep prices down to the point at which it’s impossible for a new entrant to break into their charmed group; after all, if it means they end up cutting corners, the worst that happens is that they get gummed by the toothless PCAOB. [
