Law Commons^™

Who's The Boss? Controlling Auditor Incentives Through Random Selection, David B. Kahn, Gary S. Lawson

Faculty Scholarship

It took the promise of knowledge to get Eve to yield to temptation. For people outside the Garden of Eden, money often does the job nicely. The U.S. capital markets are the locus of an enormous amount of money-and therefore of an enormous temptation for people who provide financial information to those markets to skew the reporting process to promote their own interests. The risk and potential consequences of skewed financial reporting are matters of grave concern.

Accountants' Independence The Recent Dilemma, Tamar Frankel

Faculty Scholarship

A fundamental issue has been raised recently in connection with the status of "independent accountants." The issue involves a new breed of a few very large accounting firms. These firms are engaged in global commerce and finance, and cater to an important segment of multinational corporations.

These mammoth accounting firms raise a familiar question in a new context. On the one hand, the size and diversity of the firms meet the needs of large multinational clients and offer efficiency benefits. On the other hand, these benefits expose the firms to increased possible conflicts of interest and endanger the firms' gatekeeping …