Lapses in how US auditors oversee the work of accountants in far-flung places and related paperwork errors could erode investor trust in corporate accounting, an SEC official said Friday.
US auditors should keep closer tabs on the work of outside accountants who contribute to more than half of the financial statement audits of the largest US-listed companies. That includes taking basic steps to ensure those additional accounting firms are registered with the US audit regulator and to report the names of those firms to clients’ audit committees, said Paul Munter, chief accountant to the Securities and Exchange Commission.
“If ...