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The public trust in auditors’ judgments and reputation is vital of the audit function as value-added...

The public trust in auditors’ judgments and reputation is vital of the audit function as value-added services that lend credibility to published financial reports. Do you agree or disagree with the given statement? Explain your answer.

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Answer #1

I agree for the given statement The public trust in auditors’ judgments and reputation is vital of the audit function as value-added services that lend credibility to published financial reports .Recent numerous financial restatements by high profile companies coupled with bankruptcies of major companies caused by reported financial statement fraud have eroded public confidence in financial reports and related audit functions. Restoring the public confidence requires considerable efforts by legislators, regulators, standard-setting bodies, the business community, and the accounting profession. This article suggests 12 ways that the accounting profession can rebuild public trust in financial reports and related audit functions.

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