Firms hiring former employees as auditors has been a common, yet concerning practice. In this episode of the Business Review, Assistant Professor of accounting, Dr. Owen Brown, shares a different perspective.
FIRMS COMMONLY HIRE FORMER EMPLOYEES TO AUDIT THEM. IT’S LOGICAL TO ASSUME THEIR ALUMNI MAY SHOW BIAS TO THEIR FORMER EMPLOYER, BUT ASSISTANT PROFESSOR OF ACCOUTING, DR. OWEN BROWN, SAYS HIS RESEARCH SHOWS ANOTHER SIDE.
A lot of companies will hire people from their external audit team or the firm because there's a lot of just kind of natural benefits to doing that.
That’s not an uncommon practice, but there's been some concerns about how that practice of hiring from your audit firm could impact auditor, kind of, independence or their objectivity. If you're