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Karina Isabel De Guzman
Auditing & Systems
Title
Auditing is never perfect. Financial reporting failures have afflicted the reputation of
auditors, causing firms to distrust the system. In particular, the recent events that have lead up to
this calamity have been series of ill intended audit firm and client relationships in that together
The purpose of audits is to save money and assure that companies have no material
misstatements in their financial statements. To combat the audit failures, policy makers have
turned to to In 2014, the European Commission (EC) implemented a mandatory audit firm
rotation to alleviate the global financial crisis that afflicted the European audit market (Nagy,
2005). Therefore the solution of MAFR is to strengthen professional skepticism where it is
