Do you think we need some type of regulations or a group of security's / exchanges that have requirements, auditing, etc.?? Does this already exist in some way? Could it work?
Well, it will vary. Here, MPEx describes the restrictions on listing through them:
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http://polimedia.us/trilema/2012/how-does-one-list-on-mpexWhile it doesn't enforce that the issuer undergo audits, there is nothing stopping the issuer from voluntarily undergoing an audit and releasing the results, and perhaps even requesting an investment rating.