Auditeering

Auditeering is a term used to describe the practice of auditors manipulating or altering financial statements to meet the expectations of the auditing firm or its clients. This can involve various forms of misconduct, such as ignoring or downplaying red flags, manipulating audit evidence, or providing biased opinions. Auditeering can lead to significant financial and reputational damage for both the auditing firm and its clients. It is a serious ethical violation that undermines the integrity of the auditing profession and the financial markets.

The term "auditeering" was first coined by the U.S. Senate Permanent Subcommittee on Investigations in 2002 to describe the widespread practice of auditors manipulating financial statements to meet the expectations of their clients. Since then, numerous high-profile cases of auditeering have been uncovered, including those involving Enron, WorldCom, and Tyco International.

Auditeering can take many forms, including:

* Ignoring or downplaying red flags in financial statements.

* Manipulating audit evidence to support a desired outcome.

* Providing biased opinions based on the interests of the client or the auditing firm.

* Failing to perform adequate due diligence or to follow generally accepted auditing standards.

Auditeering is a serious ethical violation that can have significant consequences for both the auditing firm and its clients. It is important for auditors to maintain the highest ethical standards and to act in the best interests of their clients and the public. The auditing profession has implemented various measures to prevent auditeering, including stricter regulations, enhanced training, and increased oversight. However, the risk of auditeering remains a significant concern for the financial markets and the public.