Mandatory External Rotation of Accountant Offices

Mandatory External Rotation of Accountant Offices Essay example
Undergraduate
Essay
Finance & Accounting
Pages 7 (1757 words)
Download 0
Mandatory External Rotation of Accountant Offices Name Course title Professor’s name Name of Institution Date of Submission Mandatory External Rotation of Accountant Offices 1.0 Introduction In the aftermath of When European financial crisis was over the European commission issued the Green paper as the aftermath of the crisis in order to analyze what happened and how to avoid the same kind of problems in future…

Introduction

The aim of these new audit policies was to resolve the financial crisis on a dynamic market, as well as to set out the objectives of auditing. In the U.S., the Securities and Exchange Commission is responsible for spelling out audit requirements. The SEC is more focused on internal audit as compared to external mandatory rotation of audit firms. Financial accounting reporting and auditing have been the key areas affected by the European crisis. In an attempt to resolve the predicament, both Europe and the U.S. have tried to come up with rotation. Rotation has been viewed as a solution to mitigate the threats associated with financial independence generated by developed nations (Mihaela et al., 2010). At a time when the world is facing a crisis new audit policy has to be a crucial factor in avoiding losses. Auditors usually find themselves in a fix due to the fact of being familiar with the management and being intimidated by their clients, which adversely leads to long-term client-audit relationship. Over the recent years, the subject of long-term audit and client relationship has raised eyebrows within public and social realms. ...
Download paper
Not exactly what you need?

Related papers

Professional Accountant
This is based on the Financial Services Markets Act of 2000. The Corporate Governance Code of 2010 is overseen by the Financial Reporting Council. Thus, public listed companies must comply with the UK Corporate Governance Code 2010. Those who fail to comply with the corporate governance Code have to explain why they departed from it. Private companies are encouraged to use the UK Corporate…
the professional accountant
At present, the company has eight major institutional investors that hold a large share in the company. It is noted that the company follows faithfully the Code of Governance in UK that provides balance representation of executive directors non executive directors in the Board. Non executive Directors are supposed to control and monitor performance of management to protect its shareholders.…
Does the rotation of auditors improve the quality of auditing?
Australia is collecting more empirical data on the subject to make a decision to make it mandatory or not. India recently envisaged that audit partner should be rotated compulsorily and there should be atleast 50% rotation of the audit team compulsorily. For listed companies, auditor rotation is made compulsory in Portugal on an explain or comply basis. Public companies in Slovenia are given a…
Professional Accountant assignment
The method is highly structured, punitive and paternal. The intention of the Act is to ascertain that the process of financial reporting is done effectively. It also seeks to reorient accountants back to ethical ways. Furthermore, the approach focuses on maintaining corporate governance at the top. A principles-based approach is the domain of the UK. The Cadbury report defines the UK’s method of…
analyzing an accountant system
The owner still has a debt obligation towards his relative ($100,000) which when accounted for is severely impacting the revenues generated by the company, thereby resulting in severe losses. The expenses for the purpose of conducting the business are of random nature which does not explain the exact purpose of incurring such expenses. As an example, it can be cited that the owner of MTS spends…
Does the rotation of auditors improve the quality of auditing?
ntial advantages of MAR fail to outweigh costs incurred and other associated risks. 3 In this context, the essay will review the available literature that analyses whether rotation of auditors improve quality of auditing. It will use deductive reasoning to derive that while there are not much empirical data that prove MAR significantly improves audit quality, at the same time, there is not much…
Rotation of Auditors Improving Quality of Audits
Being faced by many of the threats the financial statements are deemed to provide true and fair view and audit of the financial statements depicts that whether the information provided in the financial statements are up to the standards upon which the financial statements are to be presented and issued. The quality of the audit is crucial for the integrity and reliability of the information…