Auditor Independence and Outsourcing: Aligning Incentives to Mitigate Shilling and Shirking

Firms use external auditors to monitor the quality of difficult-to-observe aspects of their business partners’ performance, including the working conditions of their suppliers. Firms can improve monitoring accuracy by having their own employees conduct some audits, and by rotating across third-party auditing firms.

[Author: by Ashley Palmarozzo, Jodi L. Short, and Michael W. Toffel]

Tags: College, Michael W Toffel, Jodi L. Short, by Ashley Palmarozzo, and Michael W. Toffel, Ashley Palmarozzo Jodi L Short