Who Audits American Companies?
Response to the following problem:
Your sister is a biochemist, but she prides herself on keeping a close eye on the business news. It is her opinion that the U.S. federal government should increase the amount that it pays to the auditors of the financial statements of U.S. companies. She is convinced that taxpayers would support this increase, even if it means increased income taxes. She thinks that increased government audit fees will attract more qualified auditors and will result in a dramatic rise in the reliability of the financial statements released by U.S. companies. This increased reliability will help U.S. companies compete in the global marketplace. Comment on your sister's opinion.