ACCOUNTING: Private-company audits make a comeback, but not for all
In recent years, Sarbanes-Oxley Act regulations have been a moving force in increasing the emphasis on improved internal controls, governance and accountability in the public markets. The Securities and Exchange Commission has always required audits for publicly traded companies, but the primary users of private companies’ financial statements-banks and other lending institutions-have been slow to mandate audits. With the recent turmoil in credit markets and increasingly tight credit requirements for closely held business loans, the audit appears to be coming…