Why should an auditor make decisions in the public interest rather than in the interest of management? This is what I have so far. What else can I use?
They are made in the interest of all current and potential (public) shareholders.... if a company makes the decision to go public that means they are liable to the public that invests in them.... if a company wanted to only worry about their own interests then they should have stayed a private company and not asked for public financing through investment in their stock
Don't you think there are ethical and legal values involved here for a private company?
The public interest also includes fair taxes paid to governments. If the books are "cooked" then the public doesn't receive the taxes that are due from a company.
You've provided a great point about auditors making decisions in the public interest because companies that decide to go public are liable to the public shareholders who invest in them. Here are a few more points you can use to strengthen your explanation:
1. Independence and Objectivity: Auditors have a professional duty to maintain independence and objectivity while conducting audits. Making decisions in the public interest ensures that their judgments and evaluations are not influenced by any conflicts of interest that may arise from favoring management.
2. Stakeholder Protection: Auditors play a critical role in protecting the interests of all stakeholders, including employees, creditors, customers, and the public. By prioritizing the public interest, auditors help ensure that financial statements are accurate and reliable, giving stakeholders confidence in the organization and its operations.
3. Regulatory Requirements: Auditors are bound by regulatory requirements and professional standards that emphasize the importance of acting in the public interest. These standards are designed to promote transparency, fairness, and accountability in financial reporting.
4. Trust and Confidence: Making decisions in the public interest maintains the reputation and credibility of both auditors and the auditing profession as a whole. By acting independently and focusing on the public interest, auditors contribute to the trust and confidence of the general public in financial markets and the economy.
5. Legal and Ethical Obligations: Auditors have legal and ethical obligations to act in the public interest. Their role is to scrutinize financial records and provide an objective perspective on a company's financial health. By ensuring that financial information is accurate, auditors help protect investors and the public against fraud, misrepresentation, and financial misconduct.
By considering these additional points, you can further emphasize the importance of auditors making decisions in the public interest rather than in the interest of management.