Management of companies should have the ability to hire and fire the external auditor.

Name: Management of companies should have the ability to hire and fire the external auditor.
Brand: Quizplus
Rating: 4.8 (25 reviews)

Question

Quizplus · Accepted Answer

Management of companies cannot have the ability to hire and fire the external auditor as it may lead to conflicts of interest and compromise the independence of the auditor. The hiring and firing of external auditors should be done by the audit committee or the board of directors, which are independent from the management.

Management of Companies Should Have the Ability to Hire and Fire