Open AccessIndependent audit as a strategic tool to reduce the information asymmetry on the market
Author(s) -
Aurelija Kustienė
Publication year - 2014
Publication title -
buhalterinės apskaitos teorija ir praktika/buhalterinės apskaitos teorija ir praktika
Language(s) - English
Resource type - Journals
eISSN - 2538-8762
pISSN - 1822-8682
DOI - 10.15388/batp.2014.no16.1
Subject(s) - information asymmetry , audit , agency (philosophy) , principal–agent problem , asymmetry , business , accounting , information quality , quality (philosophy) , microeconomics , actuarial science , industrial organization , economics , information system , finance , engineering , corporate governance , philosophy , physics , epistemology , quantum mechanics , electrical engineering
This paper analyses the problems of information asymmetry in the market. The research problem: how to minimize the limitations of the influence of user information, and the quality of market participants who use financial statements provide information, awareness. The aim of the research is to reveal the independent audit role in reducing information asymmetry in the market. This objective was achieved by analysing the theories of economic: information asymmetry, signalling and agency theories. Based on the analysis of economic theories and using a logical method of analysis it was concluded that the information asymmetry in the market can be reduced by a strategic tool for the independent audit.