Summary
Public perception of financial auditing
An expectation gap exists between what the public expects in financial reporting and what CPAs believe audited information is used for, and the American Institute of CPAs is working to improve both the perceptions and the reality of financial auditing. Along with expanding the information available in audits, steps need to be taken by companies and federal regulators to increase the reliability of information. CPAs may keep an eye out for fraud, but they cannot certify the truth of all the information they report. Also, limits on accountants liability would be of benefit to the public and the economy, as well as to the profession.See the full content of this document
Extract
Perception vs. reality.
The following is adapted from a speech by Philip B. Chenok, president of the American Institute of CPAs, before the Los Angeles Rotary Club on October 15,1993.
Financial reporting in the United States is a model for the world. The overwhelming majority of audits are sound. The rate of alleged audit failures involving publicly held companies in the United States is less than one-half of 1%. Anyone would be proud of that performance. Unfortunately, it is the very few egregious situations th...See the full content of this document
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