Under greater scrutiny from all corners of the capital markets, external auditors are increasingly demanding to see behind the curtain of internal investigations at public companies, where findings could affect financial statements.
“The tension has always been there, but it has intensified lately,” says Mike Loritz, an auditor and shareholder with audit firm Mayer Hoffman McCann. “At the heart of the issue, there's an inherent conflict between the attorneys who might be performing an internal investigation on behalf of the audit committee and the external auditor who needs to fulfill their obligations.”
As companies investigate any number of issues that could affect ...