Our economic system assumes that corporations will pursue the goal of maximizing the wealth of their owners within the bounds of the law Carr, ; Friedman, We do not believe that these two views are, in fact, contradictory.
Auditor independence In the following section some light will be cast on the pros and cons of auditor independence. Current laws have created an inefficient, unethical, and wasteful system. Although internal and external auditors play different roles with an organization, they must follow auditing standards and procedures to detect fraud.
Preserving Investors Confidence in the Financial Market Public confidence in the capital market relies heavily on the appearance of auditor independence.
What organizational practices or routines facilitate this co-optation? Further, auditing firms have implemented their own more narrowly prescribed ethical standards.