Financial service firms are acquiring CPA firms. Others have argued that mandatory rotation results in initial audits with audit personnel who are less experienced on the registrant's issues. The foundation of the U.S. capital markets is high quality transparent financial reporting and disclosures. This provides investors information necessary to assess market risks and make efficient capital allocation decisions. Yet, chairman Levitt's 1998 Numbers Game speech raised concerns about trends in financial reporting that, if left unchecked, could impact the quality of financial reporting.
Many foreign countries use a semiannual model.
The FASB is currently examining the use of non-GAAP performance measures. The market risk disclosure requirements provide choices as to presenting risk exposure. The Commission staff is currently assessing the quality of international accounting standards. The need for improvements in the worldwide financial reporting structure that will be needed for a rigorous implementation and enforcement of these accounting guidelines, including the quality of auditing, auditing standards and quality control procedures is also being studied.