Nobody downloaded yet

Auditing and Accouning Ethics - Essay Example

Comments (0) Cite this document
It will also have certain dues and owes, from other organizations/individuals/government and to other…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Auditing and Accouning Ethics
Read TextPreview

Extract of sample "Auditing and Accouning Ethics"

Download file to see previous pages The audit committee, which performs the audit, plays a very important role in preventing financial reports from being fraudulent. The auditors should be independent members with suitable accounting and financial expertise, to appraise the policies underlying the financial reports and to assess their validity. Auditors should ask pertinent questions to clearly understand every transaction, allegation or investigation that has happened. An audit aims to draw out the essence and truth from every answer and helps to examine the controls and processes, employed by the company, in any complex transaction that may be out of the normal process of controls.
The requirement of an annual audit prompts companies to establish an effective compliance programme, which will have anti-fraud controls, to detect fraud, and proper investigation conducted, if fraud is detected. An audit is like a tool that ensures that financial reports would be accurately created and updated, internal control system would be in place and proper reporting and investigation of improper actions would be made.
Most corporate fraud cases have originated at the highest managerial level. The multi-billion dollar cases of fraud involving WorldCom, Enron and Tyco International, were all results of the fraudulent activities of the respective chief executives of the companies. Tyco International’s CEO, Dennis Kozlowski, was charged with misappropriating 400 million USD of company money on an extravagant lifestyle and personal expenditure. Similarly, the cofounder and CEO of telecom giant WorldCom, Bernie Ebbers, got convicted for a fraud of 11 billion USD, in 2005. Kenneth Lay, CEO of Enron, was charged with a corporate fraud that ultimately resulted in the collapse of the company.
However, in spite of strict laws that have been instituted to prevent huge losses to shareholders, employees and investors, corporate fraud is ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Auditing and Accouning Ethics Essay Example | Topics and Well Written Essays - 2750 words - 1”, n.d.)
Retrieved from
(Auditing and Accouning Ethics Essay Example | Topics and Well Written Essays - 2750 Words - 1)
“Auditing and Accouning Ethics Essay Example | Topics and Well Written Essays - 2750 Words - 1”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Auditing and Accouning Ethics

Ethics in Auditing

...actions or project implementation to ascertain that resources are used efficiently, which includes finances, labour, inputs and any other factor of production that may affect business efficiency as well as the authenticity of the financial accounts of the business. The auditor is expected to provide an audit report with recommendations concerning the amendment of inaccurate entries and situations that may negatively affect the organization. Auditors are expected to adhere to professional ethics and in a manner that promotes the organization’s well-being. This paper focuses on ethical standards in auditing and why those standards are important. It also highlights...
9 Pages(2250 words)Research Paper

Auditing & Accounting Ethics

...Running Head: AUDITING & ACCOUNTING ETHICS Auditing & Accounting Ethics of the of the Auditing & Accounting Ethics Question 1: "Independence is potentially affected by self-interest, self-review, advocacy, familiarity and intimidation threats". SOURCE: Hayes, Dassen R., et al, (2005) Principles of Auditing - an Introduction to International Standards on Auditing, 2nd Edition, Pearson Education Limited, Harlow, p.87 Required: Evaluate the difficulties of retaining auditor independence and adopting an ethical approach to auditing in view of the comments in the extract...
23 Pages(5750 words)Essay

Auditing Ethics among Public Accountants

...Auditing Ethics among Public Accountants INTRODUCTION A major issue currently facing the accounting profession is the effects of changes in organizational structures on Auditor professionalism and ethical standards. Public accountants, like other professionals, historically worked in professional partnerships or sole proprietorships. For many years professional accounting associations effectively controlled the form of Auditor organizations through explicit, formal restrictions. Non-Auditor ownership of public accounting firms was prohibited and "holding out" or advertising as a Auditor was restricted to those employed by one of these firms. However, auditing or...
14 Pages(3500 words)Essay

Auditing and Accounting Ethics

...Auditing and Accounting Ethics Question 1: It is often argued that the “economic incentives associated with different levels of auditor independence threats and litigation risk influence auditors’ evaluation of information and their subsequent reporting choices”. (Blay) The most important quality an auditor posses is the independent and unbiased approach. In many cases self-interest has been considered as the main hindrance in the independent and fair approach of auditor. Many regulations have been introduced in order to ensure the independence of auditors. The Sarbanes-Oxley Act of 2002 is considered as an important addition to the regulations ensuring auditor’s independence. The act suggests...
13 Pages(4250 words)Essay

Auditing and Accounting Ethics

...Topic: Auditing & Accounting Ethics Style: Harvard Pages: 12 ANSWER The value of auditing depends heavily on the public's perception of the independence of auditors. It is not surprising that independence is the first subject addressed in the rules of conduct. Whether independence is impaired depends on the nature of the threat, the specific safeguards applied to reduce or eliminate the threat. Hayes, R., et al (2005) argued that a self-interest threat occurs when a member firm or member of the assurance team could benefit from a financial interest or other self-interest conflict with an assurance to client. Examples of circumstances that may create this threat include but are not...
12 Pages(3000 words)Essay

Auditing and Accounting Ethics

...of ethics for auditors not to issue an audit report if he or she feels being threatened with loss of job, stocks, or other intimidating tactics used by the client. Definitely, many auditors will not allow their independence to be affected by intimidation threats(Carey, Simnett, and Tanewski 2000, 50). CONCLUSION Auditors must be independent in performing an audit. Evidently, many auditors will not allow their independence to be affected by self -interests. Clearly, many auditors will not allow their independence to be affected by self – review. Undoubtedly, many auditors will not allow their independence to be affected by advocacy. Unquestionably, many auditors will not allow their...
12 Pages(3000 words)Essay

Auditing and Accounting Ethics

...Topic: Auditing & Accounting Ethics Style: Harvard Pages: 11 An attempt has been made in this paper to comprehend different aspects of auditing specially emphasize on threats of independence, auditors liability, ethical dilemma and relationship between internal and external auditor with social responsibility. Question 1,3,4 and 2b have been attempted. In question 1 the different threats of independence as it is one of the most crucial characteristics of auditor. In question 2b, the ethical dilemma of the employee of a firm has been analysed with different point of view. In question 3 the liability of an auditor and the methods of limiting the liability have been discussed. In addition, in question 4 the responsibility in relation... dilemma...
10 Pages(2500 words)Essay

Auditing & Accounting Ethics

...Auditing and Accounting Ethics Question Introduction The matters of purpose of audit and independence of auditors have been discussed in an depth study contained here in this write up. The purposes of auditing of financial statement has been discussed for both GAAP and non- GAAP financial statements. Theory of auditors’ independence is discussed from the point of view of its practical approaches. a) Purpose of an auditAuditing is of different but here we are concerned with financial statement auditing. Basically the propose of financial audit is to extend a creditability to financial statements...
12 Pages(3000 words)Essay

Auditing and Accouning Ethics

...Auditing and Accounting Ethics QUESTION Auditing is defined as the “independent examination of financial information of any entity whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon” (Ainapure and Ainapure). From this definition the basic understanding of the purpose of audit is that auditors verify the financial information companies prepare and provide reasonable assurance to the shareholders and other stakeholders that this financial information is free from material misstatements and errors. The assertion of independence is at the core of the...
11 Pages(2750 words)Essay

The Exploration and drilling process

12 Pages(3000 words)Research Paper
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 and Accouning Ethics for FREE!

Contact Us