Figure 3 reveals how auditors come only third as stakeholders of primary concern if a company is perceived as engaging in fraudulent activity, despite the profession’s claim that auditors play a significant regulatory role in the financial reporting process. Explain this moderate concern expressed by the managers. 

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FIGURE 3: STAKEHOLDERS OF PRIMARY CONCERN IF COMPANY WERE PERCEIVED AS ENGAGING IN FRAUDULENT ACTIVITY (N=51 FINANCIAL REPORTING MANAGERS) My friends and family, 6% External auditors, 14% Others outside my company, 15% Others within my company, 16% Securities & Exchange Commission (SEC), 26% Shareholders, 22% FIGURE 3: STAKEHOLDERS OF PRIMARY CONCERN IF COMPANY WERE PERCEIVED AS ENGAGING IN FRAUDULENT ACTIVITY (N=51 FINANCIAL REPORTING MANAGERS) My friends and family, 6% External auditors, 14% Others outside my company, 15% Others within my company, 16% Securities & Exchange Commission (SEC), 26% Shareholders, 22%

Answer rating: 100% (QA)

PROFESSIONAL SKEPTICISM SAS no 99 reminds auditors they need to overcome some natural tendencies suc... View the full answer