Since the early 1990s there has been a continuing debate centred on assessing whether, within the confines of commercial pressure imposed on them, auditors are effectively carrying out their role and duties. This paper examines recent research and expert commentary related to this particular argument. It is concluded that generally, members of this profession are performing well. However, there remains significant areas of concern that need to be addressed.
“The debacle of Enron has shaken core assumptions about
auditors and auditing.”(Kay and Carsberg 2002). This
comment, and others containing similar sentiments, appeared
in the Financial Times. Driven by the events that led to the
collapse and failure of the Enron Corporation, and the
global auditing firm Arthur Andersen, it was not surprising
to find that the competency, independence and quality of the
standards of auditing began to be questioned.