Auditing and Consulting in Accounting Firms Auditing and Consulting in Accounting Firms One of the main conflict of interest amongauditors in a considerable number of accounting firms include the conflict in auditors’ personal interests, financial interest as well as editors’ emotional interests. In most case, editors and other stakeholders in accounting firms favours their subconscious and conscious interest over the interest of executing quality audit as prescribed in the ethical and moral principles and guidelines. In achieving their financial interest, editors in accounting firms compel their client to pay certain amount of fees in order to get better services and favouring reports.
This as a result brings about potential conflict of interest among the involved editors, accounting firms stakeholders and their clients. Although there are well-defined guidelines on ethical requirements that govern the execution of social responsibilities among editors pertaining to the mode of payment, a considerable number of editors in accounting firms do not abide by them. Following failure to comply with the existing guidelines, many editors have been compromising the fairness and quality of their services in expense of their personal, emotional, and financial interests (Williams, 2010).
Due to the ever-increasing conflict of interests among clients and editors, accounting firms stakeholders acquires a lot of unnecessary profits and benefits. In reacting to the editors of the accounting firms behaviours of favouring their interest in expense of the legal and ethical requirements, many customers do not have confidence in the services offered by numerous accounting firms. To enhance ethical corporate social responsibility practices, practitioners should acknowledge the fact that, compromising the quality of their service delivery for personal and financial gain is a severe setback that requires immediate action.
According to the existing guidelines on editors’ behaviours, clients’ fees should not at all affect their activities and behaviours. To improve the quality of the editors’ service delivery, clients should identify and work with editors who do not compare the quality of their service to the amount of the fees paid on them. Moreover, to minimise the conflict of interest among professionals and stakeholders in accounting firms as well as to counter the existing conflict of interest between clients and editors, accounting firms and other legal authority should ensures that, editors are compelled to comply fully to the existing guidelines.
Editors as well need to be adequately informed on the important of their services to organisations’ accountability and transparency. Reference Williams, T. (2010). Uncontrolled Risk: The Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial System. London: Mcgraw-Hill.