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In the 1990’s, auditing was about making clients happy and winning consulting contracts. In response, the FASB, the standard setter in the United States, sent auditing satisfaction surveys to CFOs at corporations. The theory was that auditors should not make people happy. Happy CFOs raised red flags.

Of course no such surveys are needed now. After the demise of Arthur Anderson and Sarbanes Oxley, auditors went to the other extreme so as to cover their butts to the greatest extent possible. There are probably no happy CFOs anymore.

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