The crisis in auditing is deep, multidimensional and it affects many groups concerned with accounting reports and their reliability.
Some of the factors contributing to the crisis facing the auditing profession could be summarized around the following:
- the staggering liability crisis with its financial impact on the accounting profession, The Liability Crisis in the United States: Impact on the Accounting Profession , a statement of position by the big accounting firms. August 6, 1992, pp.1-8.
- the ambiguous role of the auditor and an expectation gap which is getting wider and deeper
- the market for auditing services grooving more and more concentrated wit very few participants
- the cost for auditing being increasingly difficult to bear for both the auditor and the auditee
- lack of consensus on who should have the right to audit
- uncertainty in the areas of recruitment and training
- an erosion of public confidence.,
In the Public Interest: The Public Oversight Board Report
A.A. Sommer, Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants
Auditing in the 1990s: A High Wire Act?
Keith Dalglish, FCA, Chairman of the Canadian Institute of Chartered Accountants (CICA)
The Crisis in Auditing- The Regulator’s Perspective
Michael A. MacKenzie, Superintendent of Financial Institutions
Auditor’s Liability- Canadian Crisis or Not?
Brenda Eprile, Executive Director of the Ontario Securities Commission