StudentShare solutions
Triangle menu

Audit & Assurance - Essay Example

Extract of sample
Audit & Assurance

Therefore US introduced the Sarbanes Oxley Act in 2002 and UK, in 2003, set up two reviews- RRAP (Regulatory Regime of Accountancy Profession) and CGAA (Coordinating Group on Audit and Accounting) (Gray & Manson, 2007, p.140). The audit committee consists of board of directors who are entrusted with the oversight of financial reports preparation and disclosures. The more reliable the information is the more it is useful and through the auditing this purpose is achieved. The shareholders of a company are its owners who appoint the stewards in the form of directors and managers to manage the company on their behalf. The problem arises when the stewards place their personal interests before the owners’ interests. And as the managers are at an advantage over shareholders in terms of information the auditing (both internal and external) functions become all the more important. The recent financial crisis has led to the requirement of enhancing the transparency on the manager’s activities and their risk management. The identification, analysis and management of the operational as well as strategic risk are the key to avoid failures of firms if the crises were to occur in future. The audit committee alone is not responsible to prevent the economic downturn but plays an important role by challenging the assumptions and estimates the auditors undertake as part of the audit process as the economic environment changes with time (FRC, 2011). Objectives of the Paper This paper has mainly five objectives. Firstly, to understand the rights and responsibilities of the audit committee and their importance in today’s volatile financial environment. Secondly, why firms need audit committees and what they are doing to improve audit committees’ effectiveness. Thirdly, the meaning and importance of Audit Assurance has been explained. Fourthly, there is an explanation of the audit process both internal as well as external. Fifthly, the role of regulators and audit firms in bringing more effectiveness in audit process and transparency in financial disclosures so that the investors able able to take informed decisions. Rights and Responsibilities of the Audit Committee The Financial Reporting Council has provided the guidelines on Audit Committees. The rights of audit committee are as follows: 1. All the directors and management staff are obligated to keep the audit committee properly informed even if not asked. They must be cooperative with the audit committee. 2. The opinions of the audit committee should be listened and discussed by both the management and the board. 3. The audit committee has a right to intervene if it finds any discrepancy in the audit and financial controls process. And if not satisfied by the explanations given by the management then it may seek independent advice. 4. The work of the audit committee gets time consuming and intensive; therefore management must provide them with the necessary resources including the payment. There should also be a provision of induction and training of the new audit committee members in the company. The training may be continued if required. The board of the company should establish an audit committee with at least two to three members in consultation with the nomination ...Show more


Audit & Assurance Contents Contents 2 Introduction 3 Objectives of the Paper 4 Rights and Responsibilities of the Audit Committee 4 Assurance & Audit Process 6 Discussion & Analysis 8 Conclusion 9 References 11 Introduction This paper is an attempt to provide the understanding of the audit process and the role of the audit committees in post-crisis financial markets and how effectively they have been supervising the audit process and bringing transparency in financial disclosures…
Author : gbahringer
Audit & Assurance essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Audit & Assurance"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Information Security Audit And Assurance
The collection, input, storage, processing and the dissemination of data and information in the organizations database. Increase in the use of information technology in the organization has made the operations and activities in the organization more effective.
13 pages (3250 words) Essay
Finance: Audit and Assurance
A number for scandals have taken place not only in the United States but also across the globe mostly related to corporate governance, which has caused upheaval among various stakeholders of the company ranging from equity owners, government, and the public at large, which calls for strict measures to build trust among various stakeholders of the company.
7 pages (1750 words) Essay
Finance - Assurance and Audit
This calls for future protection of shareholders and brings attention to the significance of audit processes and its final outcome (Vinten, 2004, p. 13). It is necessary to carry out continuous internal audit with the aim of providing shareholders with adequate information about the financial status of the firm.
5 pages (1250 words) Essay
Finance - Audit and Assurance
A clash in the interest happens when an individual’s self-regarding interest disagrees in complying with the individual’s fiduciary responsibilities. It might also take place in an instance when an individual is accountable for discharging two fiduciary responsibilities and the obligations of one comes in the way of others.
20 pages (5000 words) Essay
Audit and Assurance Case Study(SANCTUARY GROUP PLC)
And, artist Services has incorporated three of the Company's core businesses namely Artist Management, Merchandising and finally Live Agency. And, these businesses are offering essential services to an artist at all stages of his or her career. Furthermore, Artist Management has been representing over 40 acts and operates as a music management company.
8 pages (2000 words) Essay
I am happy that you have raised your concerns in such a way that we can iron out some points that need further clarification at the earliest possible time. First, I would like for us to come up with a financial statement with, if possible, nil
8 pages (2000 words) Essay
Audit and assurance
There was a vacuum of trust and confidence in the capital markets and everyone started to point fingers at the regulators and those who were associated with the profession of auditing. Some also argued that inherent loop holes that existed in the US GAAP
10 pages (2500 words) Essay
Audit and assurance
The audit, which is mandatory and is required as per the legal obligations, is some times referred to as statutory audit. The statutory audit is going through a period of criticism and change. This is partly because of the failure of
6 pages (1500 words) Essay
Increasing complexities in the business operations and the financial transactions over a period of time underlined the inadequacy of the auditing system, especially after liberalization of the economies and globalization.
10 pages (2500 words) Essay
Audit & Assurance: Internal Control Deficiencies
The information collected through auditing is essential as it helps an organization in decision making. Shareholders of a company develop confidence when the audit reports are positive and indicate the
7 pages (1750 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Essay on topic Audit & Assurance for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us