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From Member of the Company to Registered Auditor: The Role of the External Auditor in Corporate Governance

From Member of the Company to Registered Auditor: The Role of the External Auditor in Corporate... Corporate governance has often been defined in a narrow way as comprising ‘the range of control mechanisms that protect and enhance the interests of shareholders of business enterprises’ (). In the corporate governance literature there has also been a general focus on the structure and functioning of boards of directors and the responsibilities of audit committees in relation to external auditing (;). This article looks at the evolution of the role of external auditing in corporate governance. The role of the external auditor has changed through time, and consequently it should not be assumed that the role of external auditing is fixed or that it cannot be changed to meet societal needs and expectations. This observation leads to the primary argument of our article, which is that the role of the external auditor in corporate governance ought to be expanded in order to enhance the effectiveness of corporate governance for the benefit of a wider spectrum of stakeholders and society generally. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Australian Accounting Review Wiley

From Member of the Company to Registered Auditor: The Role of the External Auditor in Corporate Governance

Baker, C. Richard
Australian Accounting Review , Volume 19 (1) – Mar 1, 2009
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9 pages

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Publisher
Wiley
Copyright
© 2009 CPA Australia
ISSN
1035-6908
eISSN
1835-2561
DOI
10.1111/j.1835-2561.2008.00042.x
Publisher site
See Article on Publisher Site

Abstract

Corporate governance has often been defined in a narrow way as comprising ‘the range of control mechanisms that protect and enhance the interests of shareholders of business enterprises’ (). In the corporate governance literature there has also been a general focus on the structure and functioning of boards of directors and the responsibilities of audit committees in relation to external auditing (;). This article looks at the evolution of the role of external auditing in corporate governance. The role of the external auditor has changed through time, and consequently it should not be assumed that the role of external auditing is fixed or that it cannot be changed to meet societal needs and expectations. This observation leads to the primary argument of our article, which is that the role of the external auditor in corporate governance ought to be expanded in order to enhance the effectiveness of corporate governance for the benefit of a wider spectrum of stakeholders and society generally.

Journal

Australian Accounting Review – Wiley

Published: Mar 1, 2009

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