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Auditors and public interest

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Why should an auditor make decisions in the public interest rather than in the interest of management or current shareholders?

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Solution Summary

The solution describes why an auditor must place the interests of the general public before those of management and shareholders.

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The job of the management of a firm, first and foremost, is to maximize shareholder wealth. There are other more direct duties defined within the scope of a management team's responsibilities, but all roads lead to the single aforementioned goal. With this in mind, it is hoped that they will do their job in an ethical and moral manner. Obviously, this is not always the case.

Shareholders of an organization have one goal: self-interest. They want to maximize the return on their investment in a firm. They have literally ...

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