Auditor Effectiveness in the United States and the United Kingdom: Comparison and Analysis

Posted: 6 Apr 2004

See all articles by Alfred C. Greenfield

Alfred C. Greenfield

Virginia Commonwealth University (VCU) - Department of Accounting

Wendy W. Peffley

Virginia Commonwealth University (VCU) - Department of Accounting

Robert W. Russ

Virginia Commonwealth University (VCU) - Department of Accounting

Date Written: January 6, 2004

Abstract

Recent scandals have brought into question the validity of companies' financial statements and the negligence of auditors in gathering evidence to uncover questionable accounting practices. The public has grown aware of the auditor's role in examining company's financial statements. Investors trust in the veracity of a company's financial statements based on the auditor's report issued upon conclusion of the audit.

The purpose of this paper is to review the role of the public auditor and to demonstrate, citing recent cases, some of the problems that arise when the established principles of auditor independence and due diligence are compromised. We also explain the guidelines that auditors are supposed to follow in order to ensure that investors have adequate information. This study is not meant to imply that all auditors deviate from these guidelines but is intended to focus on situations wherein adherence to the guidelines was not the top priority.

Keywords: Auditor independence, auditor negligence, international

JEL Classification: M41, M49, M47

Suggested Citation

Greenfield, Alfred C. and Peffley, Wendy W. and Russ, Robert W., Auditor Effectiveness in the United States and the United Kingdom: Comparison and Analysis (January 6, 2004). Available at SSRN: https://ssrn.com/abstract=484943 or http://dx.doi.org/10.2139/ssrn.484943

Alfred C. Greenfield (Contact Author)

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States
804-828-7128 (Phone)
804-828-8884 (Fax)

Wendy W. Peffley

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States
804-828-7128 (Phone)
804-828-8884 (Fax)

Robert W. Russ

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States
804-828-7128 (Phone)
804-828-8884 (Fax)

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