THE FUTURE OF AUDITING PROFESSION IN THE FACE OF AUDITORS’ LIABILITY: A REVIEW OF LITERATURE
Publication Date : 19/06/2024
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Abstract :
This study examined the global issue of auditors’ negligence cases, which have led to doubts about the reliability of audit reports and raised concerns about the future of auditing profession. This research conducted a thorough literature review to deeply explore auditors' roles and responsibilities. It investigated the legal responsibilities auditors face and their impact on the credibility of their reports, while considering approaches to mitigate these liabilities and the involvement of professional bodies. Findings indicated that auditors' legal liabilities significantly impair audit quality, the trustworthiness of audit reports, and overall professional skepticism. The research revealed the urgent need for improved risk assessment techniques to uphold audit integrity and credibility, while effectively addressing liability concerns. The conclusion is that in order to promote resiliency, trust, and adaptability in the profession, the future of auditing depends on redefining auditors' culpability. The study suggested collaboration among policymakers, professional associations, and standard-setting entities to establish legal and regulatory frameworks. Additionally, the study emphasized the value of ongoing professional development for audit firms and the cultivation of a culture of professional skepticism within the auditing profession.
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