Are auditors really independent?

Question

1.73K viewsAuditing

0

Martin 0 Comments

There have been a lot of cases where auditors failed to identify material errors (Enron,WorldCom etc.). Do you think that they are independent?

1 Answer

score 0 · Answer 1 · 2012-12-02T19:12:08+00:00

Auditors are regulated by professional bodies and their independence is thoroughly examined.

Its important for an auditor to be independent. Of course, managing a client and being independent is a thin line. All big auditing firms have specific regulations and rules in place to ensure that while a good relationship with the client is maintained, independence is not compromised.