 ConclusionLoganathan Krishnan ()
Chapter Chapter 8 in A Paradigm Shift of Auditors' Role, Duties and Liabilities in Malaysia, 2025, pp 229-254 from Springer Abstract: Abstract In the twenty-first century, the company has emerged as the dominant form of business entity, surpassing sole proprietorships and partnerships in both prevalence and economic influence. This trend is driven by the company’s unique ability to mobilize substantial capital for operational and expansionary purposes. However, it is imperative that such capital is utilized strictly for lawful and ethical activities. In this context, auditors are entrusted with the critical duty of examining and verifying corporate financial activities to ensure transparency and compliance. The failure of companies has far-reaching consequences, often severely impacting the rights and interests of stakeholders. A recurring theme in many corporate collapses is the inadequate performance of auditors in fulfilling their professional responsibilities. This underscores the need for heightened scrutiny of the auditor’s role and a reassessment of their legal and ethical obligations. Auditing provides a mechanism for corporate accountability by offering “reasonable assurance” on the accuracy of financial statements. Without such assurance, the reliability of audit reports is compromised, potentially misleading stakeholders and enabling financial misconduct. The increasing frequency of financial scandals involving auditors has cast doubt on the sufficiency of existing regulatory frameworks. Safeguarding stakeholder interests now demands a more robust legal regime—one that deters negligence and unethical conduct within the audit profession. Legislative reforms are therefore essential to prevent future financial wrongdoing and restore public trust in the integrity of audit processes. Auditors serve as vital gatekeepers of corporate integrity. In fulfilling this role, they must transcend the traditional metaphor of passive “watchdogs” and instead embrace the more proactive and investigative function of “bloodhounds.” Given the magnitude of financial harm that can befall stakeholders, auditors must be held accountable for the quality and integrity of their work. The significant powers conferred upon them must be exercised with diligence, independence, and a heightened sense of public responsibility. To strengthen audit accountability, auditors must engage with a diverse range of perspectives—including those of regulators, professional bodies, industry experts, and academics—to continually refine their role. In parallel, the scope of duty owed by auditors must be expanded beyond the corporate client to include a broader range of affected parties, aligning with evolving global standards and stakeholder expectations. Date: 2025 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-0796-2_8 Ordering information: This item can be ordered from DOI: 10.1007/978-981-95-0796-2_8 Access Statistics for this chapter More chapters in Springer Books from Springer |
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