Pricing complexities in the pharmaceutical industry: implications for external auditors
Abstract
Pharmaceutical companies have received a tremendous amount of attention in the media regarding increases in drug prices at rates much in excess of the rate of inflation. Synthesizes the numerous issues affecting drug pricing and the role that the auditor should play in determining a “fair” price. Evaluates the role of the auditor with regard to the call from investors for additional information in the annual report and more in‐depth analysis of management′s ethical and operational practices. The pharmaceuticals industry represents a unique area for consideration, given ethical and regulatory pressures and the nature of the drug development and distribution process. With the complexities of this process, considers the auditor′s responsibility to understand unfair pricing practices along with the ability to detect such practices.
Keywords
Citation
Cravens, K.S. and Glover, H.D. (1995), "Pricing complexities in the pharmaceutical industry: implications for external auditors", Managerial Auditing Journal, Vol. 10 No. 7, pp. 8-16. https://doi.org/10.1108/02686909510090285
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited