Publication Type
Blog Post
Version
publishedVersion
Publication Date
11-2019
Abstract
Auditors play a major role in corporate governance and capital markets. They facilitate firms’ access to financing by creating trust among public investors with efforts to prevent misbehavior and financial fraud by corporate insiders. In order to fulfill these goals, however, in addition to having the adequate knowledge and expertise, auditors should perform their functions in an independent manner. Unfortunately, auditors are subject to conflicts of interest by, for example, providing non-audit services or the mere fact of being hired and paid by the audited company. Therefore, even if auditors act independently, investors have reason to think otherwise. This lack of trust can undermine a firm’s access to financing and the development of capital markets.
Discipline
Business Organizations Law
Research Areas
Corporate, Finance and Securities Law
Publisher
Taylor & Francis (Routledge): SSH Titles - no Open Select
Citation
Aurelio GURREA-MARTINEZ and GELTER, Martin.
Addressing the auditor independence puzzle: Regulatory models and proposal for reform. (2019).
Available at: https://ink.library.smu.edu.sg/sol_research/3707
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.