As you know, over the past couple of years, together with the board members and staff of the Public Company Accounting Oversight Board, I have been working to enhance the reliability of the external audit function and its usefulness to U.S. capital markets.
I will start off with an overview of some of the more significant issues confronting the audit profession. And then I’d like to open a more interactive discussion.
I. Corporate Governance Has Evolved to Suit the Needs of Capital Markets.
I have known many of you for years. I have watched and admired how you have navigated the many changes we have seen in both the energy industry and corporate governance.
Many of us have gained significantly more experience than we expected in identifying, addressing and preventing future threats to corporate success, such as differences in cultural expectations and business practices around the world and at home. Enron had a profound effect on Houston.
As this morning’s discussion demonstrated, you recognize that your work is never done. There is no perfect governance regime for all time.