Auditing

Authored by: Josephine Maltby , Roy Chandler

The Routledge Companion to Accounting History

Print publication date:  April  2020
Online publication date:  April  2020

Print ISBN: 9780815375869
eBook ISBN: 9781351238885
Adobe ISBN:

10.4324/9781351238885-10

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Abstract

There are numerous reasons for companies 2 to undergo an audit. Watts and Zimmerman (1983: 614) famously characterise it as a mechanism to enable managers to add credibility to their position as stewards or to confirm the reliability of information issued to investors. Others argue that audit is not market-driven: companies undergo audit when it suits their needs, for instance as a means of avoiding stringent regulation of their financial reports or to obtain professional advice. Historical evidence provides an opportunity to study the adoption of audit in a variety of different legal and economic environments.

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