Audit Watchdog Eyes Failures Ahead Of Economic Crisis

Law360, New York (March 17, 2011, 5:06 PM EDT) -- The chief U.S. watchdog of independent auditing firms has launched an investigation into whether those auditors failed in their duties in advance of the 2008 financial crisis, the organization’s chairman said Wednesday.

The Public Company Accounting Oversight Board’s investigation may lead to disciplinary action, Chairman James R. Doty said at a meeting.

Under the Sarbanes-Oxley Act of 2002, which created the PCAOB, the board’s investigations must be confidential until they’re completed, unless the subject of the probe consents, Doty said in a prepared statement.

“This will...
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