Tough time to serve on an audit committee

We've noted that serving on an audit committee is not an easy gig right now, especially at a financial services firm. Auditors are feeling a certain amount of pressure to take a hard line on mortgage-related assets. In December, the PCAOB issued an alert to auditors on how to calculate subprime losses. Many think that audit committees will feel the need to go overboard in writing down assets. Investors' Business Daily suggests the advent of FAS 157 may lead more companies to look unfavorably on internal models and suggest draconian writedowns. AIG is an example. Last month, it reported the value of its CDSs fell $4.88 billion in October and November, a figure much larger than its previous forecast; PricewaterhouseCoopers found a "material weakness" in its controls.  

For more:
- here's the article via CNNmoney.com

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