Is there a difference between what some investors and lenders see as the role of the auditor of a public company and what it actually is? Yes. A number of investors see the auditor as responsible for uncovering fraud and accounting irregularities, while the auditor would probably argue they are only attesting to the companies' financial statements being prepared according to generally accepted accounting principles.

This resulting expectation gap means that when a corporate accounting scandal gets discovered, the attention eventually focuses on the auditors? Some in the accounting profession would argue that the public must be educated to understand the limited role that an auditor plays.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access