3 ms·

Exactly — the auditor is appointed to represent the interests of the shareholders, not the executives. At least, that’s the way it is supposed to work.

• lordnacho 4y ago
  If some fraud is uncovered, the shareholders will lose a bunch of money. So how does that align incentives?
  • Jolter 4y ago
    Presumably, any undiscovered fraud against the company is more expensive to shareholders than the discovered fraud.