FEI task force urges changes.

• Position: Advocacy - For financial management, financial reporting and corporate governance - Brief Article

Responding to the national hue and cry over the Enron mess and suggestions for changes in corporate reporting, FET convened a high-level task force this winter and quickly developed a series of thorough recommendations for improving financial management, financial reporting and corporate governance. The day after their release, the recommendations became the basis for an article in The Wall Street Journal.

In its report, the task force noted that "FET supports a clear and coordinated look at all areas of possible involvement," and observed that the following factors might have contributed to recent problems:

* Lack of ethical conduct and inappropriate "tone at the top"

* Failure of effective board oversight

* Lack of financial expertise on audit committees

* External audit failure due to compromised independence and failed quality control procedures

* Overly complex accounting standards

* Opaque financial reporting

* Emphasis on form over substance in applying accounting standards

The report went on to offer 12 recommendations in four areas: strengthening...