Shining a light on the auditors1 ___________ Every financial meltdown prompts a hunt forscapegoats. In the wake of the most recent one, calls to reformaccounting have grown particularly loud, and action is on the4 way. In the coming months both America and the EuropeanUnion are expected to introduce new rules aimed at enhancingauditors’ independence. But for all the heated debate over the7 changes, any improvement is likely to be modest.___________ America’s bean-counters were effectivelyself-regulating until 2002. That year, following a wave of10 accounting scandals, Congress passed the Sarbanes-Oxley actto reform corporate governance. It limited the consulting workfirms could do for their audit clients and set up a new regulator,13 the Public Company Accounting Oversight Board. At ameeting on December 4th it outlined three policies it expects toimplement by the end of 2014.16___________ One aims to make audit reports more useful byrequiring a section highlighting “critical audit matters” — thehigh-stakes judgment calls that keep accountants up at night,19 such as how the business being audited has valued itsintangible assets. Another would cut the share of an audit thataccounting firms can outsource without disclosure from 20%22 to 5%. Such information is valuable in emerging markets,where local accountants vary widely in quality. The mostcontroversial reform would identify by name the lead partner25 responsible for each audit.___________ Although identifying partners does not increase theirlegal liability, it does put their reputation on the line. This28 seems to make accountants more cautious.The Economist, December 7th 2013, p. 68 (adapted).Judge the items below, based on the text above. The idea expressed in the second paragraph can be correctly explained by the following sentence: In 2002 a draft bill was voted by the American Congress proposing the setting of enhanced standard for all US state-owned-company boards, management and public accounting firms.