Section 85 of the 1999 Constitution states that there shall be an Auditor-General for the Federation. The role of the Auditor-General is to ensure that there is accountability by the Executive arm of the Government to the Legislative arm‚ for the proper administration of the activities‚ functions‚ operations and programmes of the government and its various agencies. In other words‚ the auditor in the Public Sector is a watchdog of Public officers in term of financial activities. He critically examines
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matter how troubled the clients were. Through the 1990s‚ Andersen aggressively sold lucrative consulting services to those who relied on them for audits and Andersen’s top partners tripled their earnings in the ’90s. Due to this change‚ the status of auditors was relegated to the position lower than that of consultants. Even though many of its accountants continued to uphold high standard auditing service‚ others compromised in the interests of generating fees. Gradually‚ some partners who faced accounting
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and government influence in key sectors. Unlike the U.S.‚ in China and India the nonmanagement directors are not required to meet separately with management and the audit committee does not have to meet separately with management or the external auditors. The requirement in China and India to “comply or explain” deviations from corporate governance provisions is stronger than in the U.S. which only has a compliance certification requirement. However‚ in both China and India the implementation and
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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
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problem. LYNN TURNER‚ SEC Chief Accountant (1998-2001): It is real‚ real damage to the country. ANNOUNCER: Why didn’t anyone sound an alarm? VOICE: The watchdogs work for executives and Wall Street. They don’t work to protect shareholders. ANNOUNCER: Correspondent Hedrick Smith investigates how greed and politics undercut America’s financial watchdogs. HEDRICK SMITH‚ FRONTLINE Correspondent: Is anyone protecting the public? ANNOUNCER: Tonight on FRONTLINE‚ Bigger than Enron. HEDRICK SMITH‚ FRONTLINE
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INDEX Topic Page No. 1) Introduction 1 2) Types of Director 1 3) What is an Independent Director 2 4) Role of an Independent Director
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what the firm had admitted. After initial denials‚ Luca Sala‚ Bank of America’s former chief of corporate finances in Italy‚ admits to participating in a kickback scheme. Furious US creditors file a $10bn class action suit against Parmalat’s former auditors and bankers while Parmalat’s administrators under replacement chief executive Enrico Bondi separately sue Bank of America‚ Citigroup‚ Deloitte & Touche and Grant Thornton for $10bn each. The US SEC calls the
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SATYAM SCANDAL I. Analyze the case and respond to the following questions: (a) Discuss the earnings management techniques employed by the management of Satyam. In this case of Satyam‚ I can conclude that the obvious technique employed by the said management are: 1. “Big Bet on The Future”. When an acquisition occurs‚ the company acquiring the other is said to have made a big bet on the future. As refer to this case‚ Ramalingam Raju the Chairman of Satyam Computer Services Ltd
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professional persons is the “heartbeat of that profession.” Hence‚ if such trust is betrayed‚ the professional function‚ too‚ is destroyed‚ since it would become useless. Abdul Wahab Jaafar Sidek (The Star‚ 19 July 2008) of the Minority Shareholder Watchdog Group (MSWG) opined that the recent accounting scandals in Malaysia not only adversely eroded trust of the shareholders and stakeholders in the affected companies but also affected the integrity of the capital market‚ the regulators and the auditing
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“Poor governance leads to‚ and encourages and breeds‚ corruption in a number of ways‚ for instance through bribery and extortion‚ nepotism and fraud and embezzlement‚ It reduces the efficiency on which an economy depends‚ and by increasing the cost of investment‚ lowers the potential return. It also reduces the government’s resources and hence its capacity for investment. Common to other South Asian countries‚ corruption in Pakistan is unique because it occurs up stream‚ it has wings which
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