Building a Better Audit Profession: Align Incentives and Reduce Regulation

Posted: 1 Jul 2013

See all articles by Karim Jamal

Karim Jamal

University of Alberta - Department of Accounting, Operations & Information Systems

Date Written: June 1, 2007

Abstract

The article discusses the conflict of interest in auditing. The author relates that all publicly traded companies are required by law to hire a licensed auditor. It weakens the product market discipline that normally exists in the economy. In addition, the company gets to choose and pay its own auditor. It then creates the potential for a conflict of interest where the auditor might collude with management rather than serve the public interest.

Suggested Citation

Jamal, Karim, Building a Better Audit Profession: Align Incentives and Reduce Regulation (June 1, 2007). Accounting Perspectives, Vol. 7, No. 2, 2008, University of Alberta School of Business Research Paper No. 2013-1027, Available at SSRN: https://ssrn.com/abstract=2278975

Karim Jamal (Contact Author)

University of Alberta - Department of Accounting, Operations & Information Systems ( email )

Edmonton, Alberta T6G 2R6
Canada
780-492-5829 (Phone)
780-492-3325 (Fax)

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