Auditors may unconsciously help the organization they audit, rather than the outside investors.

Question

Quizplus · Accepted Answer

This is true. Auditors are responsible to the investors, lenders, shareholders, and others who rely on the financial statements made by those auditors. And ideally, auditors ought to be equally loyal to all these groups. Realistically, though, auditors do not always overlook the organization that hired them and signs their paycheck. As a result, there is a tendency, probably unconscious in most cases, to help the organization, rather than the outside investors.

Auditors May Unconsciously Help the Organization They Audit, Rather Than