standards related with audit is uncertainly or ambiguous. The obvious question is whether auditors should be blame when they failing to warn investors to ailing firms’ financial problems and risks (McNabb‚ 2009). In my opinion‚ auditors should be blame when they did not provide sufficient and useful information to alert to investors. Prior to answer the question‚ according to the NZICA (2007) required that be a auditor should to compliance with the code of ethics’ five necessary principles‚ integrity
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1. Professional standards do not prohibit auditors and client personnel from being friends. The turning point for when an auditor-client friendship violates the auditor independence rule is when the auditor is not longer independent in fact and auditor becomes less skeptical. An auditor’s independence is impaired when‚ in light of all relevant facts and circumstances‚ a reasonable investor would conclude that the auditor would not be capable of acting without bias. Mei-ya Tsai should have used professional
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Challenges of Auditors and Audit Reporting in a Corrupt Environment Prince Kennedy Modugu* Nosa Ohonba and Professor Famous Izedonmi Department of Accounting‚ Faculty of Management Sciences‚ University of Benin‚ PMB 1154‚ Benin City‚ Nigeria * Email of corresponding author: princekenny2010@yahoo.com ABSTRACT The rising spate of corruption in both private and public establishments has assumed an enormous dimension. This development has eroded public trust in financial statements. Auditors in their
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Professional Standards do not allow a company’s auditors to also provide tax services and retain independence. There have been myriad restrictions placed on professional service companies by the SEC and PCAOB. These companies are restricted on the nonaudit services that the company’s auditors can provide clients. If a service company provides auditing services for a particular company‚ they are restricted in terms of other services that they can provide. These restrictions were not always in place
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are many attributes that describes the auditor’s work. Elements of the Generally Accepted Auditing Standards are followed by auditors. The Generally Accepted Auditing Standards apply to financial‚ operational‚ and compliance audits. Auditing public traded companies has been effected by the Sarbanes-Oxley Act of 2002‚ and the Public Company Accounting Oversight Board. Auditors have additional responsibilities because of the act and the PCAOB. Elements of GAAS The three elements of the Generally
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that the auditors review was not sufficient enough to review any misstatements on the financial statements. Ernst & Whinney never questioned the internal control‚ reviewed contractual agreements or made comparison of the previous statements. If they had done any of the above‚ they would have revealed a glitch in the system. In addition‚ the review does not provide the assurance that an audit opinion would do on the financial statement. 2. Upon the performance of those procedures‚ the auditors of ZZZZ
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the auditor’s opinion and accruals quality‚ in the pricing of debt capital for privately-held firms by examining a large sample of privately-held Finnish firms. The findings indicate that Big 4 audits and joint audits with more than one responsible auditor are associated with a decreased cost of debt capital. Also‚ firms with modified audit reports and those with lower-quality accruals have a higher cost of debt capital. The findings suggest that both the perceived audit quality and audit outcomes are
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INTRODUCTION 5 ANSWER: TOPIC 1- NATURE‚ PURPOSE AND SCOPE OF AUDIT 6 ANSWER: TOPIC 2 - DISTINCTION BETWEEN ACCOUNTING AND AUDITING 7 ANSWER: TOPIC 3 - TYPES OF AUDITS AND AUDITORS 8 ANSWER: TOPIC 4 - MEANING OF TRUE AND FAIR VIEW 9 ANSWER: TOPIC 5 - DESCRIBE THE PROFESSIONAL ETHICS THAT ARE RELEVANT TO AUDITORS 10 CONCLUSION 11 APPENDIX 12 REFERENCES INTRODUCTION After done this assignment‚ we can understand deeper on the job of auditing. First of all‚ the knowledge
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(CONFORMED) AUDIT MATERIALITY (CONFORMED) Introduction 1. The purpose of this International Standard on Auditing (ISA) is to establish standards and provide guidance on the concept of materiality and its relationship with audit risk. The auditor should consider materiality and its relationship with audit risk when conducting an audit. “Materiality” is defined in the International Accounting Standards Board’s Committee’s “Framework for the Preparation and Presentation of Financial Statements”
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“analytical procedures and making inquiries of persons responsible for financial and accounting matters”. This is another difference between a review and an audit. An auditor cannot accumulate enough evidence through a review to issue an opinion. In order to express an opinion on the financial statements through an audit‚ an auditor has to get additional types of evidence such as physical counting of inventory‚ observation of assets‚ confirmations of bank statements and account receivables‚ etc…
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