Chamber Welcomes Treasury Support for Fixing Accounting and Auditing Challenges

Action Needed to Address Liability Risks

WASHINGTON, D.C.-The U.S. Chamber of Commerce today welcomed the Treasury Department's commitment to address the serious challenges to the accounting and auditing system, and praised Secretary Paulson's leadership to ensure the competitiveness of our capital markets.

"A vibrant and healthy auditing profession is critical to strong capital markets and to ensure that all investors have access to reliable financial information," said Michael Ryan, senior vice president and executive director of the Chamber's Center for Capital Markets Competitiveness. "The new Treasury committee must move quickly to drive action on this critical issue for every business and all investors."

The Chamber identified the threats to the U.S. auditing sector in a March report by the Commission on the Regulation of U.S. Capital Markets in the 21st Century, an independent and bipartisan panel formed to consider the impact of recent regulatory changes on capital markets and the appropriate overall legal and regulatory framework to ensure more efficient capital flows throughout our economy.

"We are faced with a critical challenge when one in ten American companies had to restate its earnings last year," continued Ryan. "Our current system is too complex and our litigation system places auditors and businesses at unreasonable risk, failing America's businesses, investors, and our global competitiveness."

The Chamber calls on Treasury and other policy makers to adopt a clear plan for action to repair the problems facing the accounting and auditing professions, beginning with litigation reform.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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