Auditors’ Independence – A Practical Solution
2 Pages Posted: 3 Nov 2014 Last revised: 26 Nov 2014
Date Written: October 23, 2014
The issue of auditors’ independence has haunted the corporate world for decades but we are no closer to a solution than ever before. The emergence of the ‘stakeholder oriented governance framework’ as opposed to the older ‘shareholder oriented governance process’ further propagates the fact that the responsibility of an auditor is not just to the shareholders, but many other interested groups as well. A separate and centralized body like the PCAOB should be given the task of appointing auditors for public listed companies.
Keywords: Auditor's independence
JEL Classification: M49
Suggested Citation: Suggested Citation