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Auditing And The Public Interest - Assignment Example
Author : croninrobert
Finance & Accounting
Pages 8 (2008 words)
Running head: AUDITING AND THE PUBLIC INTEREST Auditing and the public interest ASB 3214: Auditing Insert Name Insert student number Insert 30th November 2011 Word count 2035 Introduction The availability of opportunities to diversify the investment portfolio for organizations depends on the reliability of the financial information and the availability of adequate financial resources…
Being prepared by either internal or external auditors, audit report gives the evaluation of the performance of a company. The reports are not only essential to the management but also they are heavily relied upon by other parties including the shareholders, government, financial institutions and the general public. It is important to note that auditors only give an opinion as to whether or not the financial statements depict the correct financial position of a company. This paper seeks to discuss whether the current international regulatory environment for the auditing is effective in ensuring that investors and owners are provided with reliable information by external auditors. Public interest in relation to the (accounting and) audit profession According to the International Federation of Accountants (IFAC) public interest entails the entity or individuals who are directly affected by the financial reports that are given by auditors or by the accountants. One of the major objectives that accountancy profession must strive to achieve is to safeguard the interest of the public. This includes provision of accurate and reliable financial information that is vital in making investment decision. ...