What is it about?

Auditing financial statements is a public service that is conducted by private accounting firms. We argue that this current model creates dysfunctional commercial incentives. We designed an Audit Board model that is an expert in auditing and avoids many of the independence problems. Conversations with various stakeholders refined our thinking.

Featured Image

Why is it important?

Regulators and investors have concerns about audit quality. In the current model, it is hard to observe audit quality and to differentiate between functional and dysfunctional incentives. Our rethinking of the status quo supports the debate about the future of auditing in the public interest.


I really enjoyed the conceptual rethinking of the current model of financial statement audits, the great discussions within the author team about a model that currently does not exist, and the inspiring conversations with a lot of various stakeholders about the pros and cons of the model that we designed. I hope this project leads to reflection and discussion on the structure of the auditing profession.

Dr. Herman Van Brenk
Nyenrode Business Universiteit

Read the Original

This page is a summary of: Auditing in the public interest: Reforming the profession by building on the strengths of the existing accounting firms, Critical Perspectives on Accounting, May 2020, Elsevier,
DOI: 10.1016/j.cpa.2020.102184.
You can read the full text:




The following have contributed to this page