Financial crisis and the silence of the auditors

ABSTRACT

Against the backdrop of the current financial crisis, this paper seeks to stimulate debates about contemporary auditing practices. It notes that many financial enterprises have sought state support within a short period of receiving unqualified audit opinion. Auditors collected large amounts in audit and non-audit fees. The events raise questions about the value of company audits, auditor independence and quality of audit work, economic incentives for good audits and the knowledge base of auditors.

Source : Prem Sikka Financial crisis and the silence of the auditors Accounting, Organizations and Society, Volume 34, Issues 6–7, August–October 2009, Pages 868–873