The regulators are finally into action and the `cleansing' of corporate America seems to have begun in right earnest. Important issues being addressed are auditing practices, corporate governance, increasing accountability and transparency.

The pattern seems familiar. A prolonged period of strong growth, followed by the bursting of the bubble, a series of corporate wrongdoing and manipulations coming into light forcing powerful legislations. After the 1930s, this is the first time that such momentous reform is being contemplated in the American capital markets. The series of events over the last few months have contributed their share in speeding up the reform process as well as driving home strongly the need for some real reform in the oversight and regulatory aspects in governing auditing professions and companies in America.

The confidence of investors in corporate America has been totaly eroded and for good reasons at that. Since the fateful demise of Enron, the series of wrongdoing and accounting misstatements have been consistent. Every new corporate scandal that saw the light of the day has been larger than its predecessor in terms of billions of dollars. Xerox's accounting restatements to the tune of $1.4 bn were followed by WorldCom's $3.9 bn accounting restatements. Close on its heels, came the mother of all, Merck's accounting misstatements, to the tune of $12.5 bn.

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