PCAOB wants auditors to review executive pay schemes

03/1/2012 | Wall Street Journal/CFO Journal, The

The Public Company Accounting Oversight Board issued a proposal that would require auditors to determine whether executives' compensation could affect accounting decisions. The proposal is meant to avoid situations such as the one that led to the Enron scandal. Executives who receive equity-based compensation could have an incentive to boost earnings, one PCAOB board member said.

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