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Regulators should hold off with audit reforms investors don’t want

Proposals like mandatory joint audits fail to tackle the problem while potentially introducing serious unexpected consequences

Regulators should hold off with audit reforms investors don’t want
Photo: Getty Images

No problem is so serious that it cannot be made worse by a knee-jerk government reaction. You know how it goes. Something bad happens — a child dies after a dog attack or a company goes bust following a clean audits — and up goes the cry from the tabloids that “something must be done”.

It is a brave politician who resists the pressure. All too often the resulting legislation fails to tackle the problem but has serious unintended consequences.

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