Don't throw the baby with the bathwater

If distrust of those in the assurance business remains high, there will be chaos all around

The “assurance industry” is in a crisis. For purposes of this column, the term is being used to cover the profession of chartered accountants and auditors, and indeed the activity of credit rating — all of which are now facing a crisis of confidence. It is not surprising, particularly when systemically important financial institutions are under stress; when crude knee-jerk reactions of regulators are dime a dozen; and when investor confidence levels are at a low.

It is a very sensitive and critical juncture for the regulatory system. Everyone with any role in the corporate and business space has firm