As a top partner at an accounting firm, I would put in place a high powered internal team that would have sweeping powers and would be responsible to study past failures, recommend and implement changes and more importantly, conduct a random or systematic 2nd round of auditing on team/partners/clients. (The Demise of Arthur Andersen, 2002)
2. Forbid team members and partners to work with clients with insider connection: Another major factor that was responsible for the lapse in adhering to the accounting standards was the fact that one/multiple members of the auditing team had professional and/or personal interests in Colonial Realty. This seriously diminished the willingness of the auditor to evaluate the financial reports with strict objectivity.
3. Closely monitor clients that are taking accounting as well as consulting services: Accounting firm offering consulting services derive significant synergies from the consulting services. Among others, cross selling of services helps accounting firms increase their revenues and profits. Additionally, rapid change in business environment resulted in new forms of transactions, and hence an auditing firm needed more than just accountants - they needed computer professionals, lawyers and management professional to understand and audit these transactions. ...Show more