Contemporary Issues in Auditing
Contemporary Issues in Auditing
Contents
1. INTRODUCTION
Basically the audit was originally described as to ascertaining whether the resource managing party had properly accounted for all receipts and payments on behalf of his principal. Modern audit considers whether all the information provided to the users of accounts are true and fair.
Audit is, therefore, an examination of accounting records undertaken with a view to establishing whether they correctly and completely reflect the transactions.
Most importantly, an external audit tests whether or not a company is adhering to professional standards and generally acceptable accounting principles and holds a true and fair view.
Auditing is an assurance provided by an independent third party to the Stakeholders of the organization regarding the financial statement.
This effort initially focused on to investigate some current issues or problems or otherwise challenges regarding to the field of auditing.
Globalization…Information technology…Volume of transactions…New and more complex laws, regulations and standards governing entities…These few issued are discussed through this paper.
The auditing profession is currently experiencing a period of serious chaos. With severe criticisms against auditors and hence it is also fair to know what challenges and issues there are in the profession of auditing.
2. CURRENT ISSUES REGARDING AUDITING
2.1 The expectation gap in auditing
Currently there is a considerable gap between that auditors and the public hold different beliefs about the auditors’ duties and responsibilities.
Recently, some well-known corporate collapses and the subsequent implication of the reporting auditors have highlighted the audit expectation gap. So the public misperceptions are a major cause of the legal liability crisis facing by the accounting profession.
2.2 Fraudulent financial reporting and audit failures
Corporate
Contents
1. INTRODUCTION
Basically the audit was originally described as to ascertaining whether the resource managing party had properly accounted for all receipts and payments on behalf of his principal. Modern audit considers whether all the information provided to the users of accounts are true and fair.
Audit is, therefore, an examination of accounting records undertaken with a view to establishing whether they correctly and completely reflect the transactions.
Most importantly, an external audit tests whether or not a company is adhering to professional standards and generally acceptable accounting principles and holds a true and fair view.
Auditing is an assurance provided by an independent third party to the Stakeholders of the organization regarding the financial statement.
This effort initially focused on to investigate some current issues or problems or otherwise challenges regarding to the field of auditing.
Globalization…Information technology…Volume of transactions…New and more complex laws, regulations and standards governing entities…These few issued are discussed through this paper.
The auditing profession is currently experiencing a period of serious chaos. With severe criticisms against auditors and hence it is also fair to know what challenges and issues there are in the profession of auditing.
2. CURRENT ISSUES REGARDING AUDITING
2.1 The expectation gap in auditing
Currently there is a considerable gap between that auditors and the public hold different beliefs about the auditors’ duties and responsibilities.
Recently, some well-known corporate collapses and the subsequent implication of the reporting auditors have highlighted the audit expectation gap. So the public misperceptions are a major cause of the legal liability crisis facing by the accounting profession.
2.2 Fraudulent financial reporting and audit failures
Corporate
References: www.auditingtext.com http://www.kpmginstitutes.com/financial-reporting-network http://www.pwc.com/lk/en/services/assurance/internalaudit.jhtml http://www.slaasmb.org/significant_cases_detected2.html Dun & Bradstreet, Financial Risk Management2007tata Macgrow-Hill AlanMillichamp & Jhon Taylor,Auditing,9th edition