While certain types of contracts such as financial reporting and quality control consulting can generate a perception of compromised audits, there is a point where the sum of all forms of contractual relationships is so significant as to create a perceived, if not real, conflict of interest. As Attorney General in Connecticut, I have aggressively fought for the interests of consumers, seeking legislation to require greater disclosure of information to consumers and to provide the ability to seek court restitution for damages as a result of fraud. The cornerstone of our consumer protection laws is the Connecticut Unfair Trade Practices Act, which prohibits unfair or deceptive acts or practices. I intend to speak with my colleagues in state attorneys general offices across the nation about this proposal and urge their support. As consumer advocates, I am certain that they will share the Commission's concern for protecting the integrity of the financial reporting upon which many consumers are dependent for investing their hard-earned dollars in order to ensure a secure future.
Reform is needed.
The Colonial Realty scandal was only small potatoes compared to the type of work currently being performed by this nation's so called independent auditors. The Commission's rules should be tightened and clarified, not to make accounting and consulting work easier to obtain, but to protect the public interest and public trust, and the credibility and integrity of the institutions at stake.