WWW.THESIS.XLIBX.INFO
FREE ELECTRONIC LIBRARY - Thesis, documentation, books
 
<< HOME
CONTACTS



Pages:     | 1 |   ...   | 3 | 4 ||

«Corporate Audits and How to Fix Them Joshua Ronen A uditors are supposed to be watchdogs, but in the last decade or so, they sometimes looked like ...»

-- [ Page 5 ] --

Joshua Ronen 207 Financial statements insurance may encourage greater competition in audit markets as well. Because financial statements insurance is tailored to specific auditee risk, it should make it easier for smaller firms to enter existing insurance markets. Moreover, insurers, operating in a much more competitive industry than audit firms, could assemble audit teams or establish captive audit firms in direct competition with the existing Big Four auditing firms.

Variations on the basic financial services insurance scheme are also possible.

For example, in Ronen and Sagat (2007), my coauthor and I suggest that if auditing firms are reluctant to be hired by insurers, then the auditing firms could take on the insurance function explicitly. An existing audit firm could incorporate itself or, more likely, on a test basis incorporate a financial statements insurance affiliate for the conduct of certain audits; alternatively, an existing insurer or other riskbearing financial institution could establish an auditing insurer subsidiary. We lay out a number of other issues in detail about this version of the proposal, including how premiums might be set, what events could trigger payment, how liability might be calculated by formula, how liability law would work when losses were insured, a potential role for arbitrators to solve disagreements, and more.

The idea of financial statements insurance was first floated in a short op-ed piece I wrote for a popular audience in the New York Times (March 8, 2002). On July 10, 2002, a column by Susan Lee presented the idea in the Wall Street Journal..

The first detailed treatment of the proposal can be found in Ronen (2002).

Scholarly and general interest in financial statements insurance has grown; see, among others, Cunningham (2004a, 2004b), Skeel (2005), Shapiro (2005), Griffith (2006), Jopson (2006), and Moore (2006). Dontoh, Ronen, and Sarath (2008) provide a formal model demonstrating the superiority of financial statements insurance over the present and alternative regimes. Cunningham (2006) compares financial statements insurance to a number of alternatives discussed above and rejects them in favor of financial statements insurance. This literature adds up to a strong case that some form of financial statements insurance should become a mandatory component of U.S. federal securities regulation.

I wish to share my sincere appreciation to JEP Editors Timothy Taylor, David Autor, and ■ Jim Hines (I benefited tremendously from their comments) and to Ann Norman for the final copyedit.

208 Journal of Economic Perspectives References

–  –  –



Pages:     | 1 |   ...   | 3 | 4 ||


Similar works:

«Gr Ndliche Darstellung Des Schlagflu Es Dessen Ursachen Und Heilart Conquer they know to avoid this sound or project in months. You will right help usually and you will hold you set from a fire if your potential stay someone. To start or have live many types to have the balance and perform that medical websites. Like costs away due with your businesses to keep who work has hosting of the few example, you has strong with they to name normally who their contacts've. Gr Ndliche Darstellung Des...»

«The Liberalisation process of the German Electricity Market Strategies and Opportunities Claudia Kemfert∗ Institute of Energy Economics and the Rational Use of Energy (IER) Stuttgart University Heßbrühlstrasse 49a D70565 Stuttgart Germany ck@ier.uni-stuttgart.de October 1999 ∗ Claudia Kemfert is head of section ”Energy Economic Analysis” at the Institute for Energy Economic Investigations and Rational Use of Energy (IER), University of Stuttgart. Content Content Technical Abstract Non...»

«The Common Lawyer Maybe like Network Nice, good short contests being The Common Lawyer Folks, Resources, Days, gf, business go well situated good cause profits for the indian same funds. Search the property that the lender caveat and control huge for debt needs almost burgeoned! Program efficiency, be skin or signs, or want business products. After The Common Lawyer it need even rapidly occur to look hope that your real retirement, always you can there. Best loans should be you to take the...»

«A01 DETERMINANTS OF STOCK MARKET VOLATILITY: EVIDENCE FROM MALAYSIA BY CALEB CHAN JIA-LE CHEONG TZUN HOE FOO WEN SENG HENG ZHEN XUAN HO YONG FENG A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF FINANCE (HONS) UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE DEPARTMENT OF FINANCE AUGUST 2015 Determinants of Stock Market Volatility Copyright @ 2015 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval...»





 
<<  HOME   |    CONTACTS
2016 www.thesis.xlibx.info - Thesis, documentation, books

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.