Issues in Auditing - 2174 Words

Contemporary Issues in Auditing Contents 1. INTRODUCTION Basically the audit was originally described as to ascertaining whether the resource managing party had properly accounted for all receipts and payments on behalf of his principal. Modern audit considers whether all the information provided to the users of accounts are true and fair. Audit is, therefore, an examination of accounting records undertaken with a view to establishing whether they correctly and completely reflect the transactions. Most importantly, an external audit tests whether or not a company is adhering to professional standards and generally acceptable accounting principles and holds a true and fair view.†¦show more content†¦Such skill should be possessed by a professional auditor and that is why â€Å"people† will always be a critical factor for the success of an audit firm. Globalization has significantly affected on the financial sector worldwide especially those in the third-world countries and as far as audit profession is concerned, most small and medium –sized local auditing firms are having problems in recruiting qualified audit staffs since those qualified will either work for the â€Å"big four† or work abroad for bigger salaries. For the fresh accounting graduates that auditing is a less attractive profession due to long working hours and lesser remunerations made it also hard to attract potential graduates to practice auditing. Shortages in the audit staffs have led to unhealthy competition among audit practitioners and it is a significantly affected to the profession and it has become one of the prominent issues in the field of auditing. 2.6 Liability of the auditor Liability is a key issue faced by the as they normally owe a duty of care to the entities and to shareholders of those entities that they audit. This involves a responsibility inShow MoreRelatedAuditing, Attestation, and Assurance Services Paper - Introduction1077 Words   |  5 PagesAuditing, Attestation, and Assurance Services Paper Jane Johnson Contemporary Auditing I ACC/491 Auditing, Attestation, and Assurance Services Paper Introduction Auditing is a subset of attestation, which is a subset of assurance. These services, which are governed by several organizations, are unique in their own way. Because of the constantly changing role of the auditor, particularly since the Sarbanes-Oxley Act of 2002, different types of services have become necessary. In thisRead MoreThe Sarbanes Oxley Act ( Sox )1526 Words   |  7 PagesUniversity â€Æ' Introduction The Sarbanes-Oxley Act (SOX) of 2002 was implemented to deter fraudulent activities amongst companies by monitoring and auditing financial activities as well as set up internal controls to aid in the safeguard of company funds and investor’s interest. 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