Auditors: Signing out

Unfortunately, regulations today do not permit a more open dialogue between auditors and investors

The rush of resignations by audit firms is bewildering to market players: Most characterise auditors as back-slappers of firms they audit, and not desk thumpers they suddenly seem to have become. Although some investors see auditors stepping down as a sign of assertive behaviour, the immediate focus is on knowing how to deal with auditor resignations. The larger issue, and of far greater substance, is regarding the structure of the audit industry and its future.
 
An article in this paper reveals that on average, over the past five years, two auditors have resigned each month. Further, that