Oversight and Supervision of Independent Audit Activities of Publicly Traded Companies: A Review

Abstract

Independent audits are crucial to maintaining investor confidence, ensuring financial transparency, and supporting the integrity of capital markets. For publicly traded companies, the oversight and supervision of audit activities provide an essential safeguard against fraud, misstatements, and governance failures. This review article examines the frameworks, mechanisms, and institutions responsible for supervising independent audits, including audit committees, regulatory agencies, and professional bodies. It analyzes key challenges such as auditor independence, regulatory capture, enforcement gaps, and global harmonization of standards. The article also considers emerging trends, including the influence of technology, environmental, social, and governance (ESG) reporting, and cross-border oversight. The review concludes that effective oversight and supervision remain indispensable to ensuring reliable financial reporting and protecting public interest in increasingly complex and globalized markets.