OTHER NEWS - July 10, 1992
From Times Staff and Wire Reports
Accountant Responsibility Bill Gains: Accountants would be required to report wrongdoing they uncover while auditing the books of public companies and they would be protected from retaliatory lawsuits under a bill cleared by a House subcommittee. Critics have charged that some accountants overlooked outright fraud or questionable practices when thrifts filed fraudulent financial reports. The accountants would have to first report illegal activities at publicly held companies to the company’s management or board. If the company didn’t promptly correct the illegality, the accountants would then be required to report their findings to the Securities and Exchange Commission.
