search query: @indexterm AUDITING / total: 1120
reference: 173 / 1120
| Author: | Williams, P. |
| Title: | Walking Away |
| Journal: | Accountancy
2003 : APR, VOL. 131:1316, p. 26-27 |
| Index terms: | AUDITING AUDITORS RISK COMPETITION |
| Language: | eng |
| Abstract: | The author suggests that if auditing becomes so risky audit firms may simply walk away from difficult sectors. Deloitte & Touche's resignation as auditors to Huntingdon Life Sciences (HLS) has sent shock waves throughout the auditing profession. The author states that without a change in auditor liability, we may find fewer firms than ever willing or able to audit large companies. In the current economic climate many companies are clearly hurting. The audit firm deciding to walk away could be just the signal to the market that would ensure the company had little chance of survival. Maybe auditors stepping down from one company may not be so bad. However, what may happen if audit firms independently conclude that a whole market sector is too risky. |
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