True and fair
Sir: The excellent Barry Riley is surely right to suggest (10 August) that 'the most important true and fair view the auditors can project is of themselves'. Unfortunately most professions (auditors are not alone) have a wonderful capacity to pursue vested interests in the name of the public good.
However, it was ever thus. Mr Riley is crying for the moon in suggesting public education by financial watchdogs as a solu- tion to the 'gap in expectations' which he highlights. As he says, such gaps are caused by the public's fallacious assumption that those licensed to authorise as watchdogs (whether auditors, the Bank of England, or the Government) will ensure that autho- rised companies are safe.
A far better solution would be to abolish the licensing system, then caveat emptor can ride again. This solution would work, not only because there would be no gap, and not only because rating agencies would become more prominent. In essence and in the long run, personal responsibility is the only way to educate the public. (The ulti- mate result of shielding people from their own folly is to fill the world with fools).
No doubt this is crying for the moon too! Why? Because of those same vested inter- ests of regulators and their partners-in- 'George is going to recognise Moldavia when he can find it.' crime. But at least the financial journalists could help educate the public and give due warning of such interests!
Terry Arthur
23 St Mary's Street, Stamford, Lincolnshire
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