© D.L. Crumbley
The SEC has recently adopted the proactive strategy of “wildcatting” where investigations into entire industries and business sectors are begun after evidence emerges from only one company in the group regarding financial reporting problems.
Over time, the PCAOB will probably be able to identify peculiarities within existing or evolving industries that require either standard setting or regulatory attention, or both.
Source: Berton, L., “U.S. Accounting Watchdogs Try to Shut Barn Door,” Bloomberg.com, April 2, 2004; J.H. Edwards, “Audit Committees: The Last Best Hope,” Journal of Forensic Accounting, Vol. IV (2004), pp. 1-20.