Download or read book Statutory Auditors Independence in the Protection of Stakeholders Interest written by Mitrendu Roy and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: An audited financial statement is considered to be authentic and reliable by the stakeholders. Therefore, statutory auditors play an important role in protecting stakeholders' interest in a company. Thus, statutory auditors should be independent from their audit client. However, in recent corporate accounting scandals, a company's demise resulted in disastrous consequences for its stakeholders and audit failure was diagnosed to be one of the reasons behind those scandals. In this backdrop, based on existing literature, this paper attempts to identify a few issues that positively or negatively affect statutory auditors' independence in their professional engagement. Opinion of statutory auditors and select groups of respondents from other related occupations on these variables have been collected and duly analyzed. Homogeneity in the opinion of select respondent groups has also been tested using Chi-Square Test of Homogeneity. Finally, the important findings of the study are summarized and a suitable conclusion on statutory auditors' independence is drawn.

Download or read book Statutory Auditors Independence in Protecting Stakeholders Interest written by Mitrendu Narayan Roy and published by Springer. This book was released on 2018-07-20 with total page 517 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate failures and accounting scandals have shaken the foundations of investors’ confidence in the transparency, integrity and accountability of corporations and financial markets. There have also been public disquiet about the role of professional auditors and audit firms, who had been associated with these corporate scandals. Written from a global perspective, the book assists in understanding the gravity of independent attitude of statutory auditors in protecting stakeholders’ interest and examines the effectiveness of the existing standards and other legal and regulatory requirements in enforcing statutory auditors’ independent engagement. It then suggests modifications in those regulations. The study has been made through seven chapters in order to address empirically statutory auditors’ independence in protecting stakeholders’ interest. Primary audiences of the book are researchers in finance and control, students, and professionals in the field of accounting and auditing.

Download or read book Statutory Auditors Independence in the Context of Corporate Accounting Scandal written by Mitrendu Roy and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Professional accountants external to the organization are appointed by statute of law to verify the authenticity of financial statements of an organization. They are commonly known as statutory auditors. Since financial decision of a large part of the society related to the business depends upon their opinion, statutory auditors play a significant role in the economy. CAs in India, CPAs in USA execute the task of statutory audit of financial statements. Integrity, independence and unbiased functioning of statutory auditors are extremely essential for protection of stakeholders' interest. Therefore, professional institutes (e.g., ICAI in India; AICPA in US) governing statutory auditors enforce certain regulatory pronouncements for them to attain this goal. In present-day economic environment, greed and tremendous urge to survive in the cutthroat competitions tempt some company managements to breach accounting laws and manipulate financial statements. Accounting misdeeds in the financial statement eventually come under regulatory radar leading to the company's demise, impacting most of its stakeholders. Every time a scandal is revealed, automatically questions on auditors' honesty and independence are raised. In all those frauds, it was found that threats to statutory auditors' independence were acute and safeguards to reduce those threats were ineffective. Among many scandals in different parts of the globe, two notable scandals were Enron scandal in USA and Satyam scandal in India. In the context of current regulatory framework governing statutory audit in both the countries, this study attempts to analyze statutory auditors' independence in these two scandals and draws a comparison between them based on certain parameters.

Download or read book Protecting the public interest selected governance regulatory oversight auditing accounting and financial reporting issues written by and published by DIANE Publishing. This book was released on 2002 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book United States and European Union Auditor Independence Regulation written by Christiane Strohm and published by Springer Science & Business Media. This book was released on 2007-12-11 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: Christiane Strohm investigates the effects of the Sarbanes-Oxley-Act and the revised 8th EU-Directive on auditing. She shows that there is a difference in the communication and safeguarding effects of a regulation, depending on the precision of its wording and that safeguarding effects also depend on auditors' monetary incentives and on perceived costs of litigation.

Download or read book Auditor independence and regulation written by Stefan Bode and published by GRIN Verlag. This book was released on 2007-01-14 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2006 in the subject Business economics - Revision, Auditing, grade: 88 %, University of Glamorgan, language: English, abstract: This essay is concerned with the pros and cons of auditor independence and describes the way to the current audit regulation. The editor specifies five major threats which could jeopardise auditor independence. If auditors have any financial or personal interests in their clients then the self-interest threat, the self-review threat, the advocacy threat, the familiarity threat and finally the intimidation threat may occur. The intimidation threat is stressed as the most important one: as auditors highly rely on companies’ directors. They have the power to interfere with auditors’ work and can cease all lucrative non-audit service contracts if auditors do not agree with their view. Moreover, auditors’ remuneration is determined and auditors are appointed by them in reality. Furthermore, it is emphasised that especially in recent times some safeguards have been implemented by the profession, regulation, within the assurance clients and within auditing firms to eliminate the above-mentioned threats. Within the assurance client introduced independent audit committees are widespread. Further, auditing firms have implemented their own more narrowly prescribed ethical standards. Beyond this, it is highlighted that legislation is of paramount importance. The Companies Act 1985, 1989, 2004 and above all the ISA were enacted to enhance auditor independence. The third section commences by describing the past of audit regulation. It is explained that in response to the growing public criticism in the 1960s and 1970s the professional accountancy bodies began slowly to introduce auditing standards, ethical codes, disciplinary, licensing and monitoring arrangements. Further, in the aftermath of the demise of many large companies in the 1980s, the government started to implement a new regulatory framework to reduce auditors’ failures. The Companies Act 1989 and the implemented ISA in 2004 are results of the entry into the EU, as the UK must adopt EU legislation. It is estimated that in the near future the professions’ self-regulation may be abolished and stricter rules regarding audit liabilities will be implemented. This essay concludes by stating that the current situation may upset all stakeholders as unbiased auditors are not guaranteed by the self-regulated profession. The fact that audit is a business may contradict it, too. Nevertheless, it is mentioned that auditors, who act dependently are a tiny minority in reality.

Download or read book The theories of audit expectations and the expectations gap written by Ecaterina Volosin and published by GRIN Verlag. This book was released on 2008-10-20 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 75% (1,0), University of Glamorgan (Business School), course: Issues in Auditing, language: English, abstract: This essay deals with the demand for audit functions and the resulting expectations in auditors’ work. The credibility of mandated disclosure of financial statements is the central issue for regulatory bodies attempting to protect the public interest. This requirement gives rise to a demand for auditing services. Since the beginning of the audit profession theories were made in order to specify and determine the audit functions. The ‘agency-theory’ is associated with the conflicting interests of shareholders and management of a company, suggesting that the less-informed party (shareholders) will have a demand for information that monitors the behaviour of the better-informed manager. Thus, audits of financial reports would be one form of such information, providing the shareholders with independent assurance about the ongoing developments. The ‘lending credibility theory’ is similar to the agency-theory and states that audited financial statements can enhance stakeholders’ faith in management’s stewardship. Another theory is the ‘theory of inspired confidence’, whereby stakeholders demand accountability from the management as an exchange for their contribution to the company. The last discussed theory is the ‘policeman theory’ which narrows auditor’s responsibilities to prevention and detection of fraud. All these theories describe the expectations the stakeholders have of the auditors, including protection against fraud, warning of future insolvency, general reassurance of financial well-being, safeguards for auditor independence and understanding of audit reports. Although these expectations seem to be rather natural, however, an audit expectations gap does exist based mostly on the diversity of views about the audit function. The gap exists between what the public expects the auditor to do and what the auditor can and should do. Several suggestions were made to narrow the expectations gap, as well as providing statutes in order to describe audit functions especially concerning the responsibility to detect and report errors and fraud.

Download or read book Integrity Auditor Independence and the Protection of Investors written by James C. Gaa and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A basic principle underlying the public securities markets in many countries is that the interests of investors need to be protected. Independence from their clients (i.e., client management) is supposed to make it more likely that auditors will protect investors' interests. This paper examines the question whether acting in accordance with professional rules governing accounting and auditing is sufficient to provide such assurance. In addition to a set of rules, it is argued that investor protection requires that auditors possess, or act with, integrity. An analysis of the principle of acting with integrity, as contained in the AICPA Code of Professional Conduct, shows that its formulation of the principle conflicts with the concept itself, and thus that the profession's commitment to integrity is questionable. Five recent and prominent cases are examined, which show that the required integrity may be lacking. The implications of a lack of integrity are discussed at the end.

Download or read book Government Auditing Standards 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.

Download or read book Quality Control Procedure for Statutory Financial Audit written by Siddhartha Sankar Saha and published by Emerald Group Publishing. This book was released on 2017-07-13 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new work takes a comprehensive look at the quality control framework for statutory financial audit. Saha and Roy focus on identifying the different factors governing quality of audit and establish a comprehensive framework for quality control.

Download or read book Protecting the Public s Interest written by and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In the wake of the Enron collapse and the proliferation of earnings restatements and pro forma earnings assertions by other companies, questions are being raised about the soundness of private sector financial reporting, auditor independence, and corporate governance. In addressing these issues, the government's role could range from direct intervention to encouraging non-governmental and private-sector entities to adopt practices that would strengthen public confidence. GAO believes that Congress should consider a holistic approach that takes into account the many players and interrelated issues that brought about the Enron situation.

Download or read book Prosecuting Crime in the Public Interest written by Kellie Toole and published by Bloomsbury Publishing. This book was released on 2024-07-25 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides the first detailed analysis of the decision to prosecute made by the statutory Australian Offices of Director of Prosecution. It examines the system of prosecution as part of the executive branch of government, and the role and challenges of the individual prosecutors who make decisions within the system. It explores the tension between prosecutorial independence and prosecutorial accountability, and the paradox that political involvement in prosecutions is necessary for accountability and to uphold the public interest, but can compromise independence. The book makes a unique contribution to both Australian criminal law scholarship and to the international literature on criminal prosecution, by drawing on the sub-disciplines of criminal law and administrative law. It includes case studies on prosecuting child sexual abuse, rape, and government espionage, and comparisons with common law and civil law countries including the USA, the UK, Italy and South Africa.

Download or read book Auditor Independence written by Oliver Marnet and published by . This book was released on 2018 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The concept and notion of auditor independence has been of key importance to the audit profession, and to the variety of stakeholders who rely upon the work of auditors, for more than one hundred and fifty years. This contribution seeks to bring forward a number of the issues which underpin the concept together with a brief review both of recent regulatory developments and empirical evidence which seeks to consider whether auditors are in fact independent in practice.At one level the economic dependence of auditors on clients on whose financial statements they are providing an opinion suggests a prima facie lack of independence. Beyond this however there are perhaps wider and more subtle issues as to the manner in which auditors obtain, collate and evaluate the information which they rely upon to come to their opinion - sometimes termed epistemological independence - and, to an extent interlinked, the range and variety of behavioural, cultural and judgemental biases which may act to impact on that opinion.There are however a range of factors which act to constrain auditors from behaving in a non-independent manner. These include the professional training of auditors, the significant adverse economic out-turns which may result from the provision of an inappropriate audit opinion, and the range of regulatory review and indeed sanctions - including those relating to corporate governance - which seek to ensure that auditors do carry out their work and make their judgements in an independent manner.The nature of regulatory and governance change at both national and supra-national levels in recent years is reviewed briefly as is the quite extensive, albeit rather mixed, empirical evidence as to the nature of auditor independence. This empirical evidence focuses on both stakeholder perceptions and also attempts to link aspects of independence with both client reporting behaviour and actual auditor judgements. The reader is directed to references which allow this literature to be explored in greater depth.

Download or read book Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics written by Jay Thibodeau and published by McGraw-Hill/Irwin. This book was released on 2010-03-23 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: The approach used by Thibodeau and Freier emphasizes the substantial benefits of using real-life case examples in helping to impart knowledge related to the practice of auditing. This type of approach has long been acknowledged as a superior manner in which to teach. Since the authors present the concepts of auditing using actual corporate contexts, they seek to provided students with a real-life appreciation of these issues and clearly demonstrate the value of the Sarbanes-Oxley Act of 2002 and the post-Sarbanes technical audit guidance. The Third Edition has been updated to reflect all of the major changes happening in today’s society with actual companies such as Enron, WorldCom, Qwest, Sunbeam, that have become synonymous with the capital markets’ crisis in confidence. With 45 different short cases, instructors can assign 8 to 9 different cases for each of four different semesters.

Download or read book External Audit Arrangements at Central Banks written by Mr.Atilla Arda and published by International Monetary Fund. This book was released on 2018-09-11 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper takes stock of external audit arrangements at central banks. Its focus is on the annual audit of central bank financial statements, as well as legal and institutional measures that support audit quality and independence. The paper outlines good practices in these areas and provides a summary of actual practices observed based on a review of audited financial statements and central bank legislation. While the audit frameworks for central banks differ depending on their legal and institutional circumstances, central banks’ external audits increasingly follow international standards. Most of them are audited by auditors with international affiliations and embrace modern governance structures that provide for audit oversight. However, the paper also notes that a sizeable number of central banks do not publish the audit results in a timely manner, which leaves room for improvement in transparency practices.

Download or read book Auditor Independence written by Ismail Adelopo and published by Routledge. This book was released on 2016-04-08 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Auditor Independence, Ismail Adelopo argues that the importance of auditors' independence cannot be over-emphasised. Not only do auditors provide certification of the truth and fairness of the information prepared by managers, they also have a duty to express opinions on the degree of compliance with laws and regulations guiding a firm's operations. Theirs is a socially important responsibility. In all that has been proposed to mitigate the governance crisis and restore confidence in the market system, relatively little attention has been paid to auditor independence. Examining the historical role of auditing in corporate governance and the regulatory context, this book sets the function within a theoretical framework and then provides empirical analysis of the problem issues such as the relationship between audit committees and external auditors and the probity of providing non-auditing services to audit clients. The focus on matters that are damaging to market confidence and threatening to the reputation of the auditing profession, means the conclusions and recommendations in this book are important for key stakeholders, including policy makers, regulators, those running companies, and their investors and customers. This is also a book for those responsible for training in the auditing profession and for others with a research or academic interest in the matters addressed.

Download or read book Ethics for Accountants and Auditors written by Louise Kretzschmar and published by Oxford University Press, USA. This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Ethics for Accountants and Auditors offers an introduction to ethical value systems and ethical theories that are relevant to the accounting and auditing profession. The text combines theory and practical application to equip students and practitioners with the tools to deal with various ethical dilemmas. The book is suited for graduate and postgraduate teaching, managerial training and the ethical orientation of members of accounting and auditing professional associations."--Publisher's description.