Some companies outsource many business aspects that used to be conducted internally. The increasing amount of non-audit consulting work undertaken by audit firms raises concerns, especially where the audit and consulting work are done for the same company. Because conflicts of interest, either real or perceived, could lead to the appearance of impropriety and erode consumers' trust in the audit process, focus on this issue is warranted. At the same time, more consumers are putting their money in financial markets. Technological advancements, a good economy, and other factors, have spurred more and more consumers to invest.
Consumers have a variety of information sources when making investment decisions.
The value of that information is based, in part, on its reliability. An audit, performed by an outside auditing firm, provides a valuable tool for both existing shareholders and potential investors. Simply put, a reliable audit is a critical resource for consumers to make rational decisions about their investments. Testimony on Auditor Independence Consumers assume that an independent audit is, in fact, independent. In other words, consumers have a reasonable expectation that an audit provides objective information.