Would you eat at a restaurant where the health inspector was hired and paid by the restaurant owner? You’d probably look for another place to eat. But yet that’s the way our public company audit system works – auditors are hired and paid by the companies they audit.
It’s one of the few industries in the world where the inmates of the jail get to hire, fire and pay the guards.
This fundamental, structural flaw has existed for almost 200 years. It didn’t get that way by design. But until it’s changed, more Enrons, more Madoffs, are more FTXs are inevitable. Not because auditors are flawed. Because the system that auditors are required to work in is flawed.
“The integrity of our entire financial systems depends on the willingness of auditors to act against their own self-interest.
Here’s a novel idea to address this problem. It incorporates things like the Great Western Railway, bicycles, and a gallon of milk gone bad, and people including Benjamin Harrison, Isaac Newton, and Upton Sinclair.
How do you fix a fundamental flaw? You begin by aligning the incentives with the responsibilities.
Coaching for Businesses
Coaching is essential for business because it contributes to developing skilled and motivated employees. It fosters a positive workplace culture, helps businesses achieve goals, and keeps them competitive in dynamic markets.
It's an investment that can yield significant returns in terms of improved performance, innovation, and satisfaction. Check some of the companies that have been helped by CoachAva:
Randy Green 