The Sarbanes-Oxley Act, passed in 2002, enhanced regulations preserving auditors’ independence so they would not be pressured by influential firms into producing inaccurate reports. How do auditors treat these influential clients today?

On average, auditors are more likely to resign from clients who hold more influence. Furthermore, they find that the auditors more likely to resign are those with smaller audit offices, or those lacking specific expertise. 

Preventing scandals is a top priority for auditors. The findings indicate that smaller offices are less able to implement independence-risk mitigating controls in place, such as peer reviews.