Question

Good to know who they are and what they do! , respond to one of the questions posed by the author. can you please write the question you like to answer? thanks

https://iaonline.theiia.org/blogs/chambers/2018/Pages/When-Good-Accountants-Go-Bad-More-Questions-Are-Raised-Than-Answered.aspx

Answer 1

Should there be an extended cooling off period between assignments at the regulators and the regulated?

PCAOB is an institution under jurisdiction of SEC vested with responsibility to regulate auditors, protect investors and set standards for conduct of auditing work. PCAOB on regular basis look after the workings of the auditor firms to regulate that they have not complicit in their working wither intentionally or internationally.

Employees at PCAOB are ethical follower, law-abiding and enforcing persons with tons of experience and knowledge. After retirement from public services, many of them join private companies or start their own business or consultancy firm. However, more often than not they join very audit firms instead owing to their prior connections to whom they were regulating. At prima facie, this may look like a good engagement as a retired public servant helping audit firm in improving their audit quality. However, this may also lead to conflict of interest possibilities too especially when the after retirement arrangents were made prior only. This may lead to having softer view on the firm or passing of confidential information as in case of KPMG. This may not be true for all the employees of PCAOB, but only one hole can also sink a ship.

Thus, in my well read opinion, it is necessary to have cooling period of at least 18 months before a employee of board could join any organisation which is been regulated by board

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