Oversight and Inspection of Auditing

Routledge Companion to Auditing, edited by David Hay, W. Robert Knechel and Marleen Willekens, Forthcoming

Posted: 13 Apr 2014

See all articles by Mona Offermanns

Mona Offermanns

Maastricht University - Department of Accounting and Information Management

Ann Vanstraelen

Maastricht Accounting and Auditing Research and Education Center (MARC); Maastricht University

Date Written: April 11, 2014

Abstract

One of the major changes in audit regulation of the past decade relates to the system of audit oversight. In response to high-profile corporate financial reporting scandals, the US set the tone by creating the Public Company Accounting Oversight Board (PCAOB) in 2002 and thereby putting an end to self-regulation of the auditing profession, which had been the dominant model for many decades. Subsequently, many other countries followed the US example of installing independent public oversight in varying forms and stages of development. The central aim of independent audit regulators is to enhance protection of investors and the public interest through audit oversight, enforcement and improvements in audit quality. Despite the potential merits of public oversight, it cannot be denied that corporate scandals continue to occur across the globe and that regulators continue to be under pressure especially in the aftermath of the financial crisis and the current economic downturn. Hence, the core mission of oversight bodies seems far from completed. In this chapter, we introduce public oversight by providing an overview of the development and current challenges, a summary of research findings and outstanding issues for future research.

Keywords: Public oversight, inspections, auditing profession

Suggested Citation

Offermanns, Mona and Vanstraelen, Ann, Oversight and Inspection of Auditing (April 11, 2014). Routledge Companion to Auditing, edited by David Hay, W. Robert Knechel and Marleen Willekens, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2423940

Mona Offermanns

Maastricht University - Department of Accounting and Information Management ( email )

Tongersestraat 53
Maastricht, 6211 LM
Netherlands

Ann Vanstraelen (Contact Author)

Maastricht Accounting and Auditing Research and Education Center (MARC) ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

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