| dc.description.abstract | Title: Preventing Auditing Scandals? – An Investigation of How a Supervisory Authority Can Affect the Behaviour of Auditors
Background and Problem Discussion: After the financial crisis in HQ Bank AB, during the autumn of 2010, an intense debate regarding the responsibility of auditors was brought forth in Sweden. The reliability of the audit profession was further questioned and the critics continued to debate whether the SSBPA and its disciplinary system were well-functioning. A supervisory authority aims to investigate, prevent and reduce auditing errors. Nevertheless, the Authority needs to act trustworthy and in the public interest to be acknowledged as satisfactory. Consequently, the supervision and disciplinary actions of the SSBPA were interesting topics for further investigation.
Aim: The aim of this thesis is to discuss whether a supervisory authority can affect the professional conduct of auditors and thereby prevent future auditing scandals. Furthermore, auditing errors and disciplinary sanctions over time will be described. Finally, it aims to reason around the behaviour of repeat offenders.
Scope: This study investigates the Swedish supervisory authority, the SSBPA, during the period 2004 to 2010.
Method: The empirical study is based on disciplinary cases collected from the website of the SSBPA. First, all cases were read and the errors committed in those cases were compiled. Further investigation was made on relapses and recidivists in the cases. The results were thereafter analysed with the frame of reference and compared with previous studies.
Conclusions: The empirical review showed that the disciplined auditors committed errors in the audit process to a large extent. The study further revealed that few recidivists existed which implies that the auditors who received a sanction were affected by it. However, the majority of the repeat offenders did not change their behaviour which may question the effectiveness of the disciplinary system. The study indicates the Authority has the power to influence the behaviour of auditors and thereby ensure audit quality. However, there seem to be areas which have to be improved in order to function satisfactory.
Suggestions for Further Studies: In order to evaluate the organisation of the SSBPA, a more in-depth investigation of the knowledge and independence of the members could be performed. To further explore the behaviour of recidivists, an extended study with interviews, could be made. | sv |
