Financial Scandals and the Role of Auditing in Strengthening Financial Transparency and Market Integrity

Financial scandals have significantly impacted public trust in financial markets and corporate entities, highlighting deficiencies in corporate governance and internal control systems. This paper examines major financial scandals, including Enron, WorldCom, Lehman Brothers, and Romanian cases such as Caritas and CityInsurance, and their implications for financial transparency and audit practices. The research emphasises the necessity of strengthening financial auditing to prevent fraud, enhance transparency, and restore public confidence. Furthermore, the study explores the correlation between user information needs and key economic-financial indicators, demonstrating how financial information is leveraged by various stakeholders for decision-making. The role of financial audits in ensuring accurate and reliable financial reporting is also analysed in the context of international standards such as ISA 700.