It has been stated that auditors must be independent because audited financial statements must serve the needs of a wide variety of users. If the auditor were to favor one group, such as existing shareholders, there might be a bias against another group, such as prospective investors.
a. What steps has the external auditing profession taken to minimize potential bias toward important users and thereby encourage auditor independence?
b. Refer to Exhibit and describe the users of audited financial statements and the decisions that they need to make based on reliable information.