The governance problems that have come to light over the past couple of years have focused attention on the quality of accounting standards, the professionalism of auditors, and the governance practices of major companies and, most recently, of mutual funds. These scandals have been the topic of much debate and have triggered a spate of regulatory reforms.
However, rather than review the litany of scandals and regulatory responses, I would like to step back and discuss some broader, longer-term issues that affect accounting and corporate governance.