Having auditors attest to the reliability of financial statements of public companies is intended to increase public and investor confidence in the fairness of the financial information. Moreover, investors and other users of financial statements expect auditors to bring integrity, independence, objectivity, and professional competence to the financial reporting process and to prevent the issuance of misleading financial statements. The resulting sense of confidence in companies’ audited financial statements, which is key to the efficient functioning of the markets for public companies’ securities, can exist only if reasonable investors perceive auditors as independent and expert professionals who will conduct thorough.
