Nobody downloaded yet

The roles of an Auditor in Discovering Illegal Acts - Essay Example

Comments (0) Cite this document
Summary
This research aims to evaluate and present the roles of an auditor in discovering illegal acts. In a bid to achieve the set goals and objectives during the auditing process, auditors should understand their roles fully alongside having adequate professional training and experiences…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
The roles of an Auditor in Discovering Illegal Acts
Read TextPreview

Extract of sample "The roles of an Auditor in Discovering Illegal Acts"

Download file to see previous pages This essay discusses that when implementing SAS no. 99, auditors often find themselves in a complex arena of systematic approaches to detecting fraud. Most often, the auditing process fails due to barriers which escalate from the auditor’s ability to uncover fraud accurately. Such problems often involve inadequate characteristics of professionalism. Such barriers revolve around the auditor’s accounting profession of independent accounting with regard to experience, training, skills and education. Primarily, expectations gap form a complex barrier in the ability of an auditor to uncover frauds at costs that are reasonable. For instance, the actual practices that an auditor is capable of may be far away from the expectations of the stakeholders. In such cases, stakeholders presume auditors as being faults. More so, regulatory and legal impediments are barriers that auditors face. The present audits are also characterized by limits that guide the extent to which auditors can uncover reasonably. The limitations are not often aligned with auditing standards for the methods of auditing are limited while the audit is constrained by cost. Furthermore, these barriers emanate from educational issues of the auditor. Education of the auditor will enable him or her to acquire skills and experience while he or she undergoes training in his or her profession. The vice versa cannot be true. More so, the communication between the auditor and the company’s management can be a substantial barrier especially when communication barriers come from the auditor’s side....
The Role Played by the Setting of Objectives in Auditing Planning for an audit process is highly significant for the success of the process as a whole. Setting of objectives prior to conducting an audit provides a clear framework that guides the audit process as it is in progress. First of all, setting of objectives places the auditor in a position of the person who inquires on fraud issues. The auditor acquires first hand knowledge given that he or she can get vital information from the internal workforce on the people who were involved in fraud. Ramos (35) asserts that; those people who have significant information on the individuals concealing and committing fraud, have always said that they would give out the information, but they were not asked. Hand in hand, the objectives enable the auditors to visualize risks as well as respond to them accordingly. This implies that; the setting of objectives creates a clear guideline for conducting the audit process, and it sums up to the success of the audit process. Significant steps can be taken to ensure that the objectives of the audit are met consistently. Prior to the conduction of an audit, the auditors should have a proper internalization of fraud as an aspect. They should have the awareness and a better understanding of fraud. Besides, they should be familiar to risks that are attached to auditing and the necessary steps for mitigating them. For instance, auditors should have adequate information necessary for identifying the risks attached to misstatement of material as a result of fraud. They should also have the capacity of assessing those risks after post-evaluation of the entity’s controls and programs. More so, the auditors should be bold enough to have a timely response ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The roles of an Auditor in Discovering Illegal Acts Essay”, n.d.)
Retrieved from https://studentshare.org/law/1394822-week
(The Roles of an Auditor in Discovering Illegal Acts Essay)
https://studentshare.org/law/1394822-week.
“The Roles of an Auditor in Discovering Illegal Acts Essay”, n.d. https://studentshare.org/law/1394822-week.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The roles of an Auditor in Discovering Illegal Acts

AUDITOR INDEPENDENCE AND AUDITOR SCEPTICISM

...by the audit process. The process instigates from the selection procedure and ends by reporting the findings and opinion of the auditor. Therefore, the concept of audit independence emerges to be crucial with due consideration to its importance and nature. It is in this context, that audit independence is implemented based on three basic principles, i.e. the auditors must belong to the external environment of the organisation and therefore are prohibited to be a part of the client organisation, the auditors are also proscribed to audit their own workings and cannot play any advocacy role to support the organisation if found guilty (Rezaee, 2007). Nature of...
8 Pages(2000 words)Essay

Toy Central - Assessing the Possibility of Fraud and illegal Acts

...illegal acts raise material but indirect threats to the accuracy of financial statements. The next part of this section discusses with the “auditor’s consideration of the possibility of illegal acts”. This section specifically requires how auditors must respond to illegal acts that may have a direct or indirect impact on financial statements. In order to comply with AU Section 317, clients must have specific provisions related to the prevention of illegal acts. Such a provision is very essential for auditors to deal with illegal...
3 Pages(750 words)Case Study

Fraud, Errors and Illegal Acts

...policies and procedures shall rest with the management due to which, role of management has increased. Forensic accountant must have in depth study of the documents presented and should have the command to use computer software and so on. Forensic auditors must have excellent written and oral communication skill. Auditors must be aware of IT application and business processes to have a grip on IT related frauds. To nab the tax dodgers, Internal Revenue Service has number of trained people who gather information from different sources / channels to be used to detect tax frauds. IRS has the power to confiscate property of the tax defaulter / tax dodger in order to pressurize them to clear...
5 Pages(1250 words)Term Paper

Discovering Yesterday

...Title of song: Yesterday Artist: The Beatles Composer or songwriter: Paul McCartney Lyrics: Paul McCartney/John Lennon Producer: Sir George Henry Martin City where recorded: Westminster, London Year recorded and year released: 12 May 1965. Released on 13 September, 1965 by Capitol in the United States Record company / significant reissues: EMI Studios Length of the song: 00:01:56 (youtube.com) Interesting facts related to the history of the song: The melody first came to Paul McCartney in his dream when he was staying at his girlfriend’s house at 57 Wimpole Street, London. Without the lyrics, McCartney initially entitled his song “Scrambled Eggs” with the lyrics going ‘Scrambled eggs, oh, my baby, how I love your legs... of song: ...
3 Pages(750 words)Case Study

Discovering Love

...Discovering Love, Harlow, HF (1958). The nature of love. American Psychologist, 13, 673-685 Discovering Love highlights the various studies conducted by Harry Harlow and relates how his studies affected our views on the mother/child bond, love, connection and dependency and eventual maturity. The fascinating correlation between mother and child and the bonding process is explored through the use of monkeys as test subjects. In Harlow's study of the bonding process he used a cloth "mother" and a wire "mother" to decide how monkeys relate and bond. The studies found that baby monkeys not only were more attached to and felt more secure with the cloth monkey they were able to branch out and experience more on their own when they had... when a...
2 Pages(500 words)Book Report/Review

Auditor Independence

...of their failure. Each time such news grabs headlines questions are raised about the expected role of auditors to be the whistle blowers on first whiff of material fraud or manipulation and if they had compromised their role by losing their independence. Investigation into reasons for Enron failure in particular revealed that its auditors had colluded with the management in weaving a web of complex financial transactions creatively to help window dress the dwindling fortunes and losses in return for hefty non audit fee. The firm was found guilty and indicted which brought about break up of one of the five largest audit firms of the world namely Arthur Anderson. Now...
4 Pages(1000 words)Essay

Discovering computers

...operating system, the computer has the ability to process a number of applications at a certain speed. An operating system is defined as software which consists of programs and data, running on computers (Beck 1997). It is involved in the management of computer hardware resources. In addition to the same, it is also essential in terms of ensuring the proper execution of the application software. The operating system usually has various functions. As regards hardware functions (e.g. input, output and memory allocation), the operating system is responsible by acting as an intermediary between the programs and the hardware of the computer. Nowadays, personal computers make use of popular operating systems such as Microsoft...
12 Pages(3000 words)Term Paper

Auditor independence

...AUDITOR INDEPENDENCE By Department Auditor Independence Maintaining auditor independence is important to the auditing profession (Krishnamurthy & Nan, 2006, p. 465). Recently Hossain (2013, p. 246) cites that; there are issues of independence and potential conflicts that pervade accounting functions. There is an extensive doubt that accounts go beyond their usual role of advocacy to design and sell illegal products to the clients. Those concepts can enable the clients to evade taxes, and the accountants benefit on direct lucrative fees from the consulting services. The accountants serve as financial engineers to structure purposeful transactions that...
4 Pages(1000 words)Research Paper

Week 6 Assignment

...immediately followed by the Securities Exchange Act of 1934, which was that law that created the Securities and Exchange Commission. More recent reform acts include the Corporate Law Economic Reform Program Act (CLERP 9) and the Sarbanes-Oxley Act (SOX). It created many changes in financial reporting, auditors independence, disclosure, and enhanced penalty provisions. As part of Commercial Law Economic Reform Program 9 (CLERP 9) reforms, specific whistleblowing provisions were introduced into the Corporations Act 2001 in 2004, with the insertion of Part 9.4AAA entitled Protection for Whistleblowers (Pascoe, Welsh, 2002). Whistleblowing...
11 Pages(2750 words)Research Paper

Discovering Nutrition

... that goal requires me to have an intake of 6.0 teaspoons of oil per day. I need to consider varying the types of vegetables that I take. In addition, I need to reduce the amount of protein in my diet to 6.0 oz. My current physical activity is low. I will adjust the amount of time for each physical activity. For this reason, I will jog for one forty-five minutes and play soccer for one-hour weekly. Works Cited Insel, Paul. Discovering Nutrition. Burlington, MA: Jones & Bartlett Learning, 2013. Print.... Nutrient Analysis Area that Surprised Me Most After carrying out my nutrient analysis for the specified days, the high protein intake at 359 % in my diet surprised me most because of the possible health problems due to such high protein cons...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The roles of an Auditor in Discovering Illegal Acts for FREE!

Contact Us