Financial Systems and Auditing - Term Paper Example

Does the Rotation of Auditors Improve the Quality of auditing?... hellip; This provision principally attempts towards ensuring that auditors are provided with better independence in their auditing operations as well as towards assuring that investors are offered with better confidence on the financial reports published following the auditing process.... The utmost objective of rotation of auditors is accordingly, to ascertain that auditing operations are performed effectively in order to enhance audit quality (PWC, 2013)....

The writer of the present essay "Informational Technology Approach to auditing Control: Flaws and Strengths" seeks to assess the use of computer-based information system in financial transactions.... auditing.... Craig (1984), A Risk Analysis Approach to auditing, auditing.... Computer based information systems increases the risk of fraud, wrongful modification of data and inappropriate disclosure (Grobstein, & Craig, 1984)....

This includes the company's balance sheet, income statement and the statement of cash flows with material considerations, as mentioned in Statement on auditing Standards (SAS) 69.... The company's auditing objectives can be met with the help of a proper channel of communication which guides the audit team towards the accomplishment of these objectives.... effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations....

There have been changes in business and auditing, which prompts auditors to make use of continuous monitoring system and continuous auditing.... The article “Designing continuous auditing for a highly automated procure to pay process” by Faye Borthick explains on the importance of continuous auditing as it helps auditors to provide real tike assurance to their clients.... Designing continuous auditing has its share of… Highly automated procure to pay process is very complex and requires the use of digital and electronic evidence in order for the auditors to carry out the auditing process in an effective and efficient way (Borthick, 2012)....

Instead, they hire managers… The managers present a financial report to the shareholders indicating the performance of the organization within a financial year or within a given period as the shareholders may require.... Since the financial statement may in errors or omissions, an auditor is usually hired to verify the statements before they are presented to the shareholders during an annual general meeting.... Therefore, the duty of an auditor is to verify the financial statements of a legal entity....

In the essay “Managing and auditing in IT Controls” the author submits his recommendations on IT controls for management and auditing.... Being that this organization has not been having CIO or any protocols regarding computer use, additional IT controls are very vital in the management and auditing process.... hellip; The author states that one of the control systems which I recommend is known as It General Control....

It is apparent that he can be an independent auditor unaffiliated with the company or a captive… The auditing process involves the auditor perceiving the propositions before him for examination.... It is evident also that audits provide third party assurance to auditing auditing auditing is a systematic and independent examination of ments, operations, data and records of a firm.... The auditing process involves the auditor perceiving the propositions before him for examination....

Furthermore, internal control systems are equally instrumental because they enable the company to minimize the level of surprises that they may encounter along the way.... The American company operates as a multinational conglomerate with interests in different fields and segments, such as power and water, energy management, oil and gas, healthcare,… The headquarters of the company are at Fairfield, Connecticut in New York....