Auditors are centrally placed in the production of 'trust' in financial markets and are expected to perform their task with a high level of honesty, independence, and objectivity. However, most financial scandals, especially those of the21 century often blame the auditors for having overlooked irregularities or not being honest enough in their disclosures and opinions - possibly due to management pressure or collusion with the management. At the end of the day, it is the management who regularly interacts with the auditors and it is the management who pays the auditors for their services.

Explain: 

(a) how the auditors can best address the above dilemma (being able to produce trust while serving different stakeholders), and 

(b) why you think it is Justifiable OR not justifiable to blame auditors when things go wrong

Answer rating: 100% (QA)

a Addressing the Dilemma of Building Trust While Serving Different Stakeholders 1 Maintain Independence Auditors must maintain independence from the m... View the full answer