Scandals in auditing companies as an example of market self-regulation

Abstract

Market self-regulation is a process by which the market constantly regulates itself thanks to the interaction and relationships between the forces and agents that operate in it. In this context, auditing companies play a fundamental role in verifying the companies' accounting information, which must represent a true image of the economic and financial reality of the company, necessary for the efficiency of the self-regulation system. This article seeks, based on the analysis of the audit work in Spain, and in cases of accounting fraud scandals in which various audit firms have been sprinkled in our country, to conclude whether or not this self-regulatory system is an efficient system.