Structural Role Of Auditing

710 Words3 Pages
The role of auditing is to have an unbiased individual look at the financial statements to confirm that the financial reports that have been issued by the clients are following the rules of GAAP, and if they are not following GAAP, an opinion needs to be stated saying that the financial statements are not in accordance to GAAP.
One structural feature of the accounting profession is auditor offering more services other than just an audit. Accounting firms today are focusing on offering more and more services to their clients to grow revenue and profits. This means instead of an audit firm being just an audit firm; they start to become advisors and get more involved with their client’s business. Another structural feature of the account profession today is auditors leaving their audit firm and taking jobs with their clients. It is very common in the profession to have an auditor jump ship and go the client that he or she was auditing in the pursuit of a career advancement.
Conflicts of interest affect judgment when there are two sides pulling at you to make different decision. The first example of this is when your financial interests clash with your professional
…show more content…
Special interest groups lobby for the rights of the accounting profession. The problem with this is sometime the special interest groups push too far or take control over too more things. Another reason why the legislative has a problem in dealing with the conflicts of interest is that legislators don’t like changing the status quo; as well legislators have a general rule of causing no harm. This means that when change is being consider people are more concern about the damages that might be done than the damages that will happen if nothing happens. This concern couple with the fact that humans in general don’t like change makes it very hard for anything of substance to be
Open Document