Preventing audit fraud

The most effective impetus for broad change in corporate governance is usually specific scandal or fraud. The UK's Cadbury Committee is a case in point. Convened to look into specific accounting irregularities, it found cause to broaden its recommendations. It should come as no surprise then, that after a rash of questionable auditing practices in the US (Cendant, Bankers Trust, Sunbeam, etc) regulators and exchanges are taking a hard look both at specific cases and also at the overall process