Contemporary Issues in Accounting and Finance Your instructor Introduction Any Individual or Organization that participates in auditing the financial or legal statements is entitled to freedom. The independent organizations that undertake to offer auditing services of the constitution have an obligation to do it with dignity and without doubt…
They consider all this to create an enabling environment that favors their objectives (Jaiswal, 2013). The Standards of the Auditors Ready Ratios (2013) asserts that in the 21st century the European Union came up with an outline of how the auditors should conduct themselves. The outline consisted of the law that stated and guaranteed matters concerning the freedom of the assessors of the law (Kumar & Sharma, 2006, p.134). This was similar to the laws that govern the accountants. It is said that the accountants were given their laws that govern their operations. They were given by the internal profession of the accountants (Knapp, 2010, p.204). In order to promote the equality in the people and all the other professions the European Union issued a framework that was to govern the legal analyst (auditors) and ensure that they were in line with their operation, expectations and their rights. Even though, this did not concur with some stipulations from the international federation of accountants. This is because the accountants were entitled to some fundamental freedom and rights that ought not to be compromised. And each accountant had an obligation of independence and doing the right thing. The directives the European Union gave, differed with the directives the international ethics for accountancy (Buijink et al., 1996, p.66). According to Sharma (2012, p.14), the differences were seen and they did expect the law auditors to operate within their stipulations. In giving their outline, the union for accountants had in mind the idea of public interest. They were interested in the good of the people. But in essence the European Union found the laws quite strict for the auditors to withstand (Puttick et al., 2008, p.56). So it was a two way drive. If the law analyst happens to execute their duties within the provisions of the international accountants, the result will be a stronger system in the operation. This is because there were quite stricter provisions. And if they do there duties in the boundaries of the stipulations of the European Union, they will be bound to some freedom (Basu, 2010, p.134). Discussion According to Greene (2005, p.11), a debate about the freedom of the person when conducting and assessing the legal issues forms the basis of the story. It is from this that the general theme of the work is, “the obligation of auditing”. This discussion is majorly rotating about this question. The title about the auditor being independent comes out from the following discussion (Morris et al., 2009, p.309). Some of the good principals are now in place and should be in mind of the any auditor or accounting profession. Whenever the auditing is to happen, the outstanding statute is the objective of the auditor. In order to show the public, the people moderating and using the audit opinions in particular, the auditor is supposed to be independent. Before entering an agreement with the client; the auditor should ensure a peaceful environment and his independence (Volosin, 2008, p.14). According to Gupta (2004, .1247), the European Union argues that, by defining the key audit partner, it does not ...
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Contextually, in terms of both auditors and clients, this letter primarily depicts the terms and the provisions of the engagement where the purpose of the engagement and the terms of the compensation for the auditors are appropriately mentioned. The purpose of this letter is to establish an engagement relationship amid Hammerson plc, a FTSE listed company and Loughran and Shrives Chartered Accountants, who would act as an auditor for the company.
It also involves auditor’s responsibility towards the client. An engagement letter describes the lawful relationship or an engagement between an ‘audit firm’ along with its clients. The engagement letter involves within it the terms and the conditions of the engagement, which mainly addresses the opportunity of the particular engagement and the details of the compensation complying with the firm.
A subject area of accounting and finance, financial regulation, involves preventing economic crises (International Monetary Fund 2009). Accounting deals with “identifying, measuring and communicating economic information to enable informed judgements and decisions by users of the information” (Collier 2003, p.
This paper attempts to explore this concern and discuss the contemporary issues by providing logical answers based on an analysis of the practical application of theories by scholars. Accounting is a legal framework which consists of laws, regulations and therefore accounting regulations is very important.
A statutory auditor is a certified external auditor who has the statutory obligation to certify the accountability of the firm’s financial statements in accordance with professional auditing standards (European Commission 2011). In order to ensure stakeholder confidence regarding the transparency of the auditing process, it is necessary to promote the independence of statutory auditors.
In this regard, experts and economists (Manning & Nothwehr, pp. 1, 2008) have carried out investigations and researches to analyze the factors that made it possible for the crisis to rip off big names like General Motors, etc. In particular, there has been disparity between outcomes of such researches, as some experts (Aitken-Davies, 2008) blamed unprofessional practices of providing illogical remuneration to CEOs that resulted in huge losses to companies, whereas, some blamed lack of corporate governance that inclined the organizations toward the economic recession.
Accounting deals with “identifying, measuring and communicating economic information to enable informed judgements and decisions by users of the information” (Collier 2003, p. 3, citing a 1966 definition). At the same time, accounting is
Accounting deals with “identifying, measuring and communicating economic information to enable informed judgements and decisions by users of the information” (Collier 2003, p. 3, citing a 1966 definition). At the same