In the Balance Sheets: Reassessing the Auditors' Reporting Model

Published: August 14, 2008 in Knowledge@Emory Financial audits are nothing short of legendary as a result of corporate scandals in recent years—think Enron—that at once made the stuff of balance sheets as compelling as a good suspense novel. One consequence of these corporate crises is that considerable pressure has been placed on auditors to improve the overall audit process to ensure they are uncovering material misstatements. In short, the auditor’s report, an important tool in informing investors, the government and others that a company’s financial statements have been prepared in accordance with Generally Accepted Accounting Principles, has come under intense scrutiny. The auditor’s reporting model has long inspired interest, featuring prominently in academic research through the years. From the early 20th century when... [read full story]