Given that financial fraud occurs even with the presence of outside auditors, what steps do companies...

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General Management

Given that financial fraud occurs even with the presence ofoutside auditors, what steps do companies need to take in order tomake sure that their financial statements remain accurate andtrustworthy? How can a company better support the role of anoutside auditor?

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A Of late financial frauds are on the rise and this is because of management control wresting in the hands of the ownersshareholders either directly or indirectly The credibility and reputation of externaloutside auditors and credit rating agencies have taken a beating as they are found wanting by sitting on the fence and should have been doing their jobs with utmost transparency and ethics and calling out any frauds and blowing the whistle to the board of directors in the event the management is involved in the fraud or is abetting it or even if ignoring malpractices and refusing to take cognizance and action Some of the steps that companies need to take in order to make sure that their financial statements remain accurate and trustworthy are 1 Divest management control from the company owners owners should not play an active role in the operations and owners and See Answer

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