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Auditor scepticism is an increasing concern for the profession and stakeholders of UK Companies
Finance & Accounting
Pages 10 (2510 words)
Auditor scepticism is an increasing concern for the profession and stakeholders of UK Companies Introduction In this essay I will discuss about how auditor scepticism is an increasing concern for the profession and stakeholders of UK Companies. As the society is becoming more complex, decision makers are increasingly provided with unreliable information (Edmund, 2005).
The principal rationale for the companies to provide unreal data is remoteness of information, complex transactions and voluminous data. Now, in order to get rid of this problem, the society on a whole developed a common way of obtaining reliable information and termed it as audit. Auditing is a process of verifying information. The audited information then helps in the decision making process (Collier, 1993). It is also essential for the stakeholders and public for having confidence in the companies. The primary objective of auditing is about detecting and preventing any kind of frauds and errors. Despite of that, some companies still comes up with unreal data and manages to evade tax. According to reports, the major reason behind this phenomenon is the reduced scepticism level among the auditors. In UK, due to reduced scepticism among the auditors, stakeholders are finding it difficult to make proper decision pertaining to investment. As before investing, it is essential for the stakeholders to have confidence in the companies where they are investing. Therefore to get deep insights about the issue, the report will emphasize on how auditor scepticism is becoming a cause of concern for the stakeholders of the companies based on UK. ...
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