Nobody downloaded yet

Auditing - Essay Example

Comments (0) Cite this document
Summary
AUDITING Table of Contents Introduction 3 Globalisation 3 Effects of Globalisation on Accounting and Auditing 4 Auditors and Auditees 5 Driving Factors 6 Changes in Audit Process 7 Conclusion 8 References 9 Bibliography 12 Introduction The term “globalisation” has become the most discussed buzzword among the academicians, politicians and economists in recent times…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Auditing
Read TextPreview

Extract of sample "Auditing"

Download file to see previous pages However, globalisation is also associated with different business and financial risks. Globalisation can have varied effects on different economies in the world. Various forces like investors, borrowers, financial institutions, etc. are having an impounding effect on increased levels of financial globalisation (Schmukler, Zoido & Halac, n.d., p.1). With globalisation and associated risks, accounting and auditing procedures are also encountering significant changes worldwide. In this report the effects of globalisation on auditing mechanisms and various developments of auditing procedures have been studied. Globalisation Globalisation can be defined as the process of increasing association of the markets worldwide and the interdependence between the business processes followed by different organisations all over the world. Recent years have encountered a rapid increase in such phenomenon. Globalisation describes the spread and interconnectivities of new advanced technologies, communication systems and production all over the world (Smith & Doyle, 2002). The two important driving factors towards globalisation are: a) Advancements in infrastructure of telecommunications and b) the increasing use and advancement of internet. The economies of the world are getting connected and resulting in increased opportunities for business concerns as well as rising competitions amongst themselves. There is a development of sharing of international cultures as well. The expansion of trade worldwide and globalisation have brought about significant benefits for different economies all over the world. However the recent Global Financial Crisis has somewhat put a hold on the globalisation process (International Monetary Fund, n.d.). Various benefits to citizens of a country as a result of globalisation includes admittance to increased varieties of products and services at lower costs, increased number of job opportunities, higher standard of living, etc (International Monetary Fund, February 2008). Effects of Globalisation on Accounting and Auditing The number of business organisations operating globally is vast and it is increasing at an increasing rate. This puts emphasis on the development of accounting language which is common to all the countries in the world. Globalisation has brought about significant changes in the accounting and auditing procedures all over the world. There had been profound changes in reporting standards of financial statements of organisations as a result of globalisation. This is quite evident from instances like the convergence agreement that has been signed between International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) in the year 2002 and the adoption of International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS) by the European Union (EU) in the year 2005 (Ding, Jeanjean & Stolowy, 2008, p.145). Globalisation is having a significant effect on the accounting profession itself. With the advancement of information technology and internet web based financial reporting systems are becoming more common and also mandatory for most of the business concerns. The accounting models used by different business organisations have changed. Globalisation has also brought about changes regarding the systems of communicating financial ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Auditing Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.org/management/1397552-auditing
(Auditing Essay Example | Topics and Well Written Essays - 1750 Words)
https://studentshare.org/management/1397552-auditing.
“Auditing Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/management/1397552-auditing.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Auditing

Auditing

...?Auditing 300 i. Confidentiality, professional competency, due care, professional behaviour and integrity are some of the fundamental audit principles (Wild, Shaw and Chiappetta 2011, 811). These are standards that an audit member must adhere to in order to uphold integrity in the profession. In the above problem, Bob has breached the confidentiality principle; this is an ethical principle and legal obligation of discretion which require non disclosure of information except to the client and audit committee about the findings or any material uncovered during the course of audit. This is unless permission is granted by the client for such discloser (Boritz 2004, 29). However, the above principle can be violated in the following... ...
3 Pages(750 words)Essay

Auditing

...Management Letter When an auditor addresses a letter to a client, it is called a management letter. The content of this letter is the conclusions drawn by the certified public accountant concerning the accounting procedures and policies of a company, its internal policies, as well as the internal controls. The current system is evaluated, and its flaws are identified. Suggestions for improvements are then outlined. Issues identified by the management letter do not need disclosure in the Financial Annual Report. Nevertheless, the letter reflects the recommendations and concerns of the auditor that he might have come across during the audit process. A report by an auditor is a complete review by a third party of the...
3 Pages(750 words)Essay

Auditing

...Auditing Stagecoach Company is among the leading transport companies in the United Kingdom. The company is a quoted company and that means that it has to publish its financial reports on an annual basis. The reports are usually published so that the stakeholders of the company can use them. The stakeholders include the shareholders, government, and the employees of the company. In the preparation of the audited report, the auditor has to be aware of the risk areas that can be changed to make the financial statements of the company look more appealing to the stakeholders of the company (Emerson, 212).The risk areas include the following, 1. Overstating of revenues and the understating of expenses Revenues...
7 Pages(1750 words)Case Study

Auditing

...? Auditing Question 4 An organization has to adhere to the standards formulated by regulatory bodies. Standards are essential ingredients to the development of appropriate principles and procedures to be followed (Gomez, 2012). Audit procedures should be consistent with auditing standards. This offers the auditors with guidance on their tasks and acts as a yardstick for the evaluation of the audit work done. When the auditors were carrying out their work on BP p.l.c, they complied with the field standards, general standards and reporting standards n auditing. The general auditing standards require that an audit is carried...
3 Pages(750 words)Coursework

Auditing

...Auditing Answer i) Confidentiality is one of the professional standards which should be maintained by the professional accountant or audit assistant of a firm. An audit assistant should respect the confidentiality of information acquire as a result of business and professional relationships and should not disclose information to parties other than those involved in the contract unless there is a professional or legal duty or right to disclose. However, acquiring of confidential information as a result of the business and professional relationship should not be put to use for third parties advantage or that of auditors. The alternative adopted by the audit assistant is...
4 Pages(1000 words)Essay

Auditing

...Table of Contents Audit Risks 2 Group Accounts 2 Foreign Currency 3 Intangible Assets 3 Provisions 4 Taxation 4 Intangible Assets: Increased Risks and Audit Procedures 5 Valuation 5 Impairment 6 References 8 Audit Risks The audit of the company Mobile Streams Plc. is followed by risks as the nature of the business tends to increase the risks. With the increased risk as per the operations of the company there are risks involved for the auditors where the auditors shall not be able to discover the material misstatements in the financial statements whether intentional or non-intentional (Philip & Michael, 2007). The risks involved in the audit of this company is analyzed and elaborated. The analysis of the management assertions... to what the...
8 Pages(2000 words)Essay

Auditing

...Auditing Part A 054 words Part B: 778 words March 27, Introduction The audit process entails determining whether the Havelock Europa Plc financial reports are true or correct (Havelock Europa, 2013). Untrue and incorrect financial reports include erroneous financial statement amounts (Arens, 2011). Errors are unintentionally misstatements are due to human errors. On the other hand, fraudulent financial statements include figures that were intentionally inserted by one or more company employees, possibly conniving with the external auditors. The research delves on the five areas of heightened audit risk. Auditing must prioritize auditing financial...
8 Pages(2000 words)Assignment

Auditing

...Auditing Auditing Auditing is a very crucial activity in any successful organization. Audit services providethe shareholders of a company with professional information and opinion on whether their company financial statements reflect the actual state of affair as they are on the ground (Lehman, 2010). For these reasons, the topic will be of research to determine and explore the independence of auditors in terms of the audit quality, non-audit service fees, and non-audit service (Campbell and Houghton, 2005). Non-audit services are professional services provided by a qualified public accountant to an...
1 Pages(250 words)Literature review

Auditing

...Corse 21 February “The Smartest Guys in the Room” Documentary the important individuals, their job and their responsibilities? A) Kenneth Lay - Lay is described as the founder of Enron and Arthur Anderson accountancy and audit firm. B) Jeffrey Skilling - Jeffrey was the manager in charge of human resource. As the manager in charge of human resource, his role involved creation of staff executives. However, he utilized poor financial reporting, special purpose entities, and accounting loopholes to hide dollars that amounted to billions, which originated from failed projects and deals. C) Andrew Fastow - He was the chief financial officer who with other executives misled the top management as the audit...
3 Pages(750 words)Coursework

Auditing

...Auditing Task Introduction The preparation of financial ments is in compliance with the requirements of company law. Different bodies provide the guidelines for preparing the financial statements. The reason for the framework for the preparation of financial statements is the difference in laws prevailing in different countries. In a bid to ensure conformity and uniformity, bodies such as the International Financial and Reporting Standards prepared rules and regulations that should be followed when preparing the financial statements (Foster & Greenawalt 1995, pp. 1-5). Precisely, the primary purpose of the accounting framework is to ensure that the users of financial information are provided with user-friendly...
6 Pages(1500 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 Auditing for FREE!

Contact Us