On the Independence of Auditors, with Special Regard to the Financial Sector

Tünde Barabás
PhD student, Kaposvár University, PhD School of Financial Management and Organisational Studies

Published in: Public Finance Quarterly 2013/2 (p. 184-198.)

Summary: The appearance of the joint stock company has made unlimited consolidation of capital possible, but capital ownership and capital operation became separated as a result. From the very beginning, the goal was to protect ownership interests and limit management interests. In order to better enforce ownership interests, the use of auditors became prevalent. The main argument for this was their independence. In recent decades, there has been increasing demand for enforcing the interests of parties beyond the owners within the operation of companies, particularly banks. The present paper draws conclusions after processing relevant literature and makes recommendations on how to improve auditor independence in the financial sector.

Keywords: auditor, independence, bank, credibility of financial statements

Journal of Economic Literature (JEL) kód: M42

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