The street level sign of the KPMG building in downtown Los Angeles (REUTERS/Sam Mircovich).
Keeping Corporate Managements Honest
August 20, 2013,
In response to a bipartisan House vote stopping a government board from forcing public companies to change auditors every six or seven years, Robert Pozen proposes a different plan requiring audit committees of public companies to issue a request for proposals for auditors to bid for the company's audit business every 15 years. Switching the allegiance of the auditor to independent directors on company boards would better ensure honest management, argues Pozen.