The blame game which initiated after a series of accounting fraud erupting through the surface of the US corporate sector lead to many arguments and suggestions regarding who should be blamed for such misfortune which caused billions of shareholders’ dollars wiped off from the…
iples and standards allowed the management of corporations to manipulate their accounts easily and according to their own desires leaving behind misery for shareholders and a whole lot of mess for the regulators and the government to manage. This discussion paper will examine the arguments targeting the auditing profession that blamed auditors for not performing their responsibilities and for not doing enough to detect and prevent these cases of fraudulent activities of major corporations in the US. This discussion is supported by presenting details of five important accounting fraud cases which made the headlines and in some cases where auditors were also involved in assisting management in their malpractices.
The auditors’ role is primarily viewed as that of verification of financial statements prepared by businesses. However, traditional view of it remained that auditors are responsible for detecting and preventing accounting frauds. The transition from this view to that of independent verification of financial statements was led by emergence of huge conglomerates where shareholdings are dispersed and the concentration of auditors’ investigation is not on the management’s honesty in preparing their accounts (Singh 2003). ISA 200 provides details of overall responsibilities of independent auditor and sets out the scope and nature of audit activities to be performed in accordance with international auditing standards. It states that the auditors’ role is to increase the confidence of users of financial statements by making a presentation on all material aspects of information disclosed in financial statements. However, it emphasizes that auditors do not relieve management from their role in corporate governance and ensuring the correctness of information provided in financial statement. The auditors are required to provide reasonable or high assurance regarding that financial statements are free from material misstatement. However, it is not in anyways an ...
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“Audit and Assurance Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/miscellaneous/382883-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.
At the turn of 21st century, there happened a number of scandals such as WorldCom, Enron which made people question the integrity of the audit profession. The most respected firm Arthur Anderson, which was the audit firm for Enron, was finished. This led to a stronger demand for supervision of auditing practices.
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.
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.
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.
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.
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
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.
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
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