Why do audit partners struggle with making tough accounting decisions that may be contrary to their

client's position on the issue? What changes should the profession make to eliminate these obstacles?

Audit partners struggle with making tough accounting decisions that may be contrary to their client's
position. The reason is that the client is the customer of the audit firm. The client pays the audit fees and
retains the auditors. That apart if a company goes bankrupt the reputation of the auditor suffers greatly.
Moreover, it is believed that if an auditor gives a qualified/adverse report or even gives a going concern
report, the company's reputation suffers irreparable loss. The stocks tumble, the banks don't lend and
the suppliers don't give credit. Such a report strikes the death bell of the company.
The profession can make some changes to eliminate some obstacles to auditor independence. These
could include a provision that audit fees of public companies be paid by a public body and not by the
company. There can be a provision for compulsorily rotating external auditors; the auditors should not
be allowed to provide any other service to the companies they audit and a review of the audit process by
another firm to ensure that external audits are carried out with professionalism.