December 23, 2010 -- Professor Lynn Stout commented on the role of auditors in the financial crisis in a Wall Street Journal article.
"We have to take this as a very serious red flag that there really may be something that has changed in the audit industry," said Lynn Stout, a professor of corporate and securities law at the University of California, Los Angeles.
That's particularly the case with the valuation methods for companies' assets, she said. "Companies rely on auditors to bless their valuation methods and there's so much subjectivity," Ms. Stout said. "There's a real problem if we can't rely on the valuations."
To read the entire article, click here.
Professor Stout also published an op-ed on the topic in the New York Times "Room for Debate" blog. To read the op-ed, please click here.