What do auditors do?: obviously they do not scrutinize the accounting and reporting
2006 (English)Report (Other academic)
Previous research has shown that compliance with accounting standards in Swedish municipalities in general is poor. Auditors and auditing firms are important actors in the process of institutionalising accounting standards. Auditors’ credibility relies on their ability to appear as professional and independent. However, the formal and institutional requirements to de facto ensure professionalism and independence in the Swedish municipal sector have been strongly questioned. The aim of this study is to examine the auditors’ role and responsibility for the poor compliance with accounting standards in Swedish municipalities. The results expose large shortcomings of the audits of Swedish municipalities. The auditors seldom or never make any remark on deviation or violation of the accounting standards in their auditing reports. This indicates that the current formal and institutional settings do not support professional and independent auditing of Swedish municipalities. The auditors seem to ally themselves with the auditees in a fabrication, in order to induce a false belief to the public. The involvement of the auditors in the deception is essential in order to give “comfort” to the contained stakeholders Thus, the institutionalisation of new accounting standards does not benefit from the normative and coercive pressure from the auditors.
Place, publisher, year, edition, pages
Kristianstad: Department of Business Studies, Kristianstad University College , 2006. , 13 p.
Working paper series, ISSN 1650-0636 ; 2006:6
IdentifiersURN: urn:nbn:se:hkr:diva-8735OAI: oai:DiVA.org:hkr-8735DiVA: diva2:457978