The paper describes the accounting profession role in the framework of corporate and securities regulation as a tool to "control" directors & managers in the interest of investors. It delves in the relevance of auditor's independence, analyzing the crucial issues and moments that may put that...

The economic structure of the relationship between the auditors and the audited firm explains the powerful incentives for auditor's independence. Auditors risk a lot in case lack of independence is found, not only their reputation may be tarnished, but also the investments (quasi-rents) in their...