On the Independence of Auditors, with Special Regard to the Financial Sector

Abstract

The appearance of the joint stock company has made unlimited consolidation of capital possible, but capital ownership and capital operation became separated as a result. From the very beginning, the goal was to protect ownership interests and limit ma-nagement interests. In order to better enforce ownership interests, the use of auditors became prevalent. The main argument for this was their independence. In recent decades, there has been increasing demand for enforcing the interests of parties beyond the owners within the operation of companies, particularly banks. The present paper draws conclusions after processing relevant literature and makes recommendations on how to improve auditor independence in the financial sector.