Watergate-era Audit Fraud Rules Face Post-Wells Fargo Revamp

Years after Wells Fargo & Co. and Volkswagen AG shelled out billions to settle federal fraud allegations, investors are still eager for tougher rules that would make auditors weigh the financial toll of deceiving customers and regulators.

The end appears in sight. The US audit board has pledged to modernize requirements dating back decades that spell out how auditors should consider the risk that public company clients violated a law or regulation when vetting their earnings and balance sheets.

Investors want the changes to shed more light on corporate crimes. Accountants and lawyers, meanwhile, say the audit requirements should reflect ...