Auditing Essays

Auditors cannot meet the public auditing standards

Professional scepticism is an important part of auditing as it necessitates the auditor exercising their qualified judgement in dealing with occurrences and circumstances of a countless number. (Auditing and Assurance Standard Board, 2012). Since the global financial crisis, there has been increasing importance placed on applying professional scepticism and many auditors have been criticised for not using scepticism in their valuation and assessments of factors like going concern issues, fair value

in the field of accounting and auditing only is not sufficient. In the preparation of financial report involves the use of expertise in a field other than accounting and auditing, the auditor, who is skilled in auditing and accounting may not possess the necessary expertise to audit that financial report. Thus, Australian Auditing Standard has included some provision through its standard in which an auditor can use the work of an Auditor’s Expert. Australian Auditing Standard (ASA) 620 defines the

joining the team and being involved in the audit of Brown Ltd. I hope this training document will give you a bit more knowledge and help you so you can get involved and have an idea of what you are doing. Firstly, I will begin to tell you a bit about auditing and why companies must be audited. An audit of a company's financial statements allows the auditor to form an opinion if the financial statements are prepared in accordance with the financial reporting framework. It is the auditor's job to provide

The auditing team will need to have a diverse set of skills and experience in order to properly audit Chesapeake Energy. First, the audit team must have experience within the gas and oil industry in addition to understanding the various complications of oil and gas production. Relevant skills and experience include knowledge about the industry, and include work experience related to oil and gas companies. This is critical because many oil and gas companies operate internally and follow IFRS. Some

the auditors. The biggest audit fail of Enron Corporation not only led the company towards declaring bankruptcy but also dissolved one of the five big professional services companies, the Arthur Anderson. However, it may not be fair to blame the auditing profession entirely for the fall of a company. In the case of Enron, the chief financial officer himself concealed

1. What is an expectation gap and why is it a controversial issue facing the auditing Function? • Definitions of the Expectations Gap: There are many definitions of the audit expectations gap. Audit expectations gap is when external auditor’s understanding and knowing everything about their role and duties is compared against the expectations of the general public and users of financial statements. The first use of the term 'expectations gap ' originated from the United States, where the term has

finish the audit. One of the pros of this alternative is that the audit will be done in time. Another pro is that by not recording all the hours spent on auditing the audit will not exceed the budget. These pros will result in a satisfied client and supervisor. And it will also secure future business and loyalty of the client. Furthermore, the auditing team will get recognition for getting the work done under budgetary and time

are most fundamental guarantee for auditors to perform services with no bias and preferences, especially for internal auditors. Internal auditors may know the information and situations of their company, which makes them more difficult to perform auditing actions. Therefore, keeping independent and objective helps auditors audit the company and report the real information and financial position to management and audit committee. This also helps the company grow healthily, and managers could adopt

Independence in mental attitude concerns the auditor’s state of mind. It deals with inappropriate biases when auditing a firm. Whereas, independence in appearance, is avoiding the circumstance that makes well informed third parties believe that the auditor is not truly independent. Furthermore, independence in appearance lowers the prospect for an auditor to act

inappropriate and that concessions and amendments are necessary for keeping small businesses in the public sector (p. 162). This compliance has created another issue of high costs of meeting the external auditing requirement. The cost of receiving an audit is extremely inflated and finding an auditing company with acceptable charges is almost nonexistent. Ghosh & Pawlewicz (2009) posits the decreased likelihood of misstated financial reports in small business has not curtailed the audit expenses due

The growth of the US economy in the 1920s-1960s had caused a shift of auditing development from the UK to the USA. In the years of recovery after 1929, investment in business entities grew rapidly. As companies grew in size, the separation of the ownership and management functions became more evident. Hence to ensure that funds continued to flow from investors to companies, and the financial markets function smoothly, there is a need to convince the participants in the financial markets that the

According to the textbook, Auditing For Managers, this is a four stage process. First, controls will need to be implemented at the corporate level, which is referred to as the head office in Sunshine Fashions, and they need to apply to all levels of the organization. Second, each

I quickly learned that auditing is more practical than it is theoretical. I engaged different learning approaches that included independently reviewing financial cases to gain a better understanding of the fundamental theories of the discipline. I also sought practical experience in Pan-China, where I audited annual reports of listed companies and engaged in an IPO due diligence process. The academic and practical experiences gave me a comprehensive understanding of auditing and equipped me with essential

The chief accountant (CA) of an organization is charged with understanding both financial and managerial accounting, due to the opportunities for fraud within a corporation, when focusing on one or the other. Gaining a clear understanding of both will allow the CA to make precise and informative decisions because their knowledge is versed in both concepts. First, the Sarbanes-Oxley Act of 2002, holds the chief executive officer (CEO) and chief financial officer (CFO) responsible for the establishment

For example, Mark, Hal, Brenda and Gail know about a substantial number of old stock and past due records. By eliminating this data which was found during the audit, would lead them to be part of the group to this unlawful action and dishonor the auditing profession. Brenda and Hal wish to deny these outcomes from Mark’s report to keep their rewards and the significant image of the association. Mark must pick whether to forbid results and abuse the Institute of Internal Auditing's Code of Ethics or

Boeing Case Study: Sarbanes-Oxley Act's Internal Control Mandates and Whistleblowing Name University Boeing Case Study: Sarbanes-Oxley Act's Internal Control Mandates and Whistleblowing Similar to other public companies, Boeing intends to comply with the Sarbanes-Oxley Act's (SOX) internal control mandates. To ensure that its internal audit committee sufficiently handled all requirements, Boeing contracted with PricewaterhouseCoopers (PwC) auditors for additional support. In January

courses at Athens State University was an introductory auditing class, and I immediately took an interest in learning everything possible in that one class. Auditing is a very intricate and easily misinterpreted line of work. The first thing I remember learning is that auditors do not guarantee that all financial statements and everything audited within a company is 100% accurate, and that is often a misconception when it comes to the auditing field. What interests me is how thorough an auditor, both

1. Auditing can be defined as carrying out a formal financial investigation or examination of a firm and its financial statements. During the process of auditing the auditors will go through all of the company’s books and financial statements. He will analyze research and go through all the relevant financial records to ensure that they are accurate and whether taxes are being paid properly. 2. There are various benefits of the auditing process. The benefits of an audit include analyzing and

Nowadays, many small business entities in the marketplace are looking for a cheaper way for the auditors to obtain the financial information. In order to reduce the auditing cost, some people mention that different levels of audit standards are needed. The article "An audit is an audit, or is it?", written by Phil Cowperthwaite on the CPA Magazine, talks about whether should the society pare down the audit standards or should the audit-lite exist and the importance of maintaining all audit standards