Effective regulation - We need new audit rules

A TRULY disheartening aspect of our current difficulties for the tens of thousands of people who have lost jobs or businesses, or those who have seen share and pension values destroyed, is the absolute failure of regulatory systems, private and public.

Today we detail how auditors, a profession whose integrity and independence are their bedrock, might be more effective if we had different procedures, expectations and legislation.

We see how their independence can be compromised by the need to secure business and we see how long-term relationships made some auditors more like company insiders than overseers. This obviously suited some of our banks, but it did not suit our country.

Once our economic future has been secured we will have many changes to make, many new laws to introduce. How auditors work and are employed will need considerable revision because the current system failed.