ipl-logo

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

Show More
Related

  • Barry Minkow: Identify The Affected Party In The Case

    867 Words  | 4 Pages

    Accounting and auditing firm The scandal's consequences would primarily be a professional embarrassment for auditing and accounting firms. The American Institute of Certified Public Accountants quickly altered the auditing standards of the accounting profession in the United States, prompting auditors to become more proactive in combating fraud. The shareholders

    Read More

  • Mgt Section 391 Week 1 Paper

    802 Words  | 4 Pages

    This includes; implementing and maintaining financial control procedures, planning, supervising, offering specialized Advice, obtaining sufficient data, and financial compliance (Petrick, 2016). A CPA’s responsibilities in regards to audit engagements include; planning, testing of controls, substantiation or fieldwork and exit or finalization. The first step in this process is notifying the client that an audit is about to take place. The Auditor will then, gather information to understand the organization, review and evaluate internal control procedures, confirm major transactions and balances and test underlying accounting records (Renitra, 2000). The differences in a CPA’s professional responsibility for consulting engagement and audit engagement is that an consulting engagement focuses one a specific area of an organization whereas an audit engagement focuses on the entire

    Read More

  • Aicca Rule 504

    488 Words  | 2 Pages

    505 par. .01], states, "A member may practice public accounting only in a form of organization permitted by law or regulation whose characteristics conform to resolutions of Council. " The Council Resolution (the Resolution) requires, among other things, that a majority of the financial interests in a firm engaged in attest services be owned by CPAs. In the context of alternative practice structures (APS) in which (1) the majority of the financial interests in the attest firm is owned by CPAs and (2) all or substantially all of the revenues are paid to another entity in return for services and the lease of employees, equipment, and office space, questions have arisen as to the applicability of Rule

    Read More

  • Ggb 515 Task 1

    789 Words  | 4 Pages

    A financial audit is an independent, objective evaluation of an organization 's financial reports and financial reporting processes. The primary purpose for financial audits is to give stakeholders reasonable assurance that financial statements are accurate and complete. Most internal audits are not adding value. One reason is that “ongoing compliance burdens and pressure to do more with less” is contributing to the decline in perceived internal audit value.

    Read More

  • Analysis Of Learning To Love Our Lobbyist Friends, By Frederick Allen

    764 Words  | 4 Pages

    Now that lobbyists cannot utilize earmarks, traditionally the most direct way for a member of Congress to do a lobbyist’s bidding, because of the informal ban in Congress on earmarks, lobbyists are no longer receiving this kind of direct funding for their projects. Nonetheless, the presence of lobbyists will not fade. Lobbyists serve a vast array of interests, and reflect the diversity of the United States in what they represent. Today lobbyists are more powerful than ever, attempting to buy influence on issues, and are also more accountable than ever before. Allen concludes with asserting that since lobbyists represent interests at least some Americans hold, Americans cannot think that lobbyists are the

    Read More

  • Analysis Of Lobbyists: Kings Of The Hill

    904 Words  | 4 Pages

    Surprisingly, lobbying is a constitutional right protected by the First Amendment. Thus, it is very hard to ban this historical practice of doing business even though it is obviously corrupt. Another reason lobbying is difficult to stop is many public servants end up working for a lobbying group after their time on the hill. Job offers are a common tactic used by lobbyists to get more influence and trust from congressional staffers. An investigation done by Sunlight Foundation found that from the years 2009-2011, 41% of former congressional staff found their next employment at a lobbying firm (Doctorow)

    Read More

  • The Consequences Of California's '4th Branch' Of Government: The Initiative

    2046 Words  | 9 Pages

    Interest groups are essential to the legislative process because they represent the interests of specific groups of people and provide a means for those people to have their voices heard in government. By working to influence policymakers, interest groups help to ensure that the needs and concerns of their members are taken into account when laws are

    Read More

  • AICPA Legacy Scholarship Essay

    839 Words  | 4 Pages

    I can simply answer because I want to be a hero. In my opinion, an auditor is a dark knight that saves the world secretly and silently. An auditor has to commit to do his job professionally as well as ethically. As a matter of fact, there have been many corporate and accounting frauds, such as the WorldCom scandal in 2002 and the Madoff Ponzi scheme in 2008,

    Read More

  • The Pros And Cons Of Interest Groups

    210 Words  | 1 Pages

    “Interest groups tend to be single-issue organizations (Levin –Waldman, 2012)”. “Interest groups also tends to pursue their goals by making policy-related appeals to government (Levin- Waldman, 2012)”. Interest groups also supports diversity of different people. “The activity of the interest groups is induced by their ability and desire to affect the final policy outcome in the legislature. ”(Epstein, Mealem, & Nitzan, 2013)

    Read More

  • Environmental Collapse Of Easter Island

    1168 Words  | 5 Pages

    As far as changing is concerned, over the years our society has been horribly impacted and many have changed due to these impacts. Although change is difficult, one must adapt to the constantly changing

    Read More

  • Essay On Conflict Of Interest

    1082 Words  | 5 Pages

    Conflicts of Interest The financial principle “Conflicts of Interest” is a situation arising as a result of incompatibility of the desire of multiple parties; moreover it can be viewed from another angle of perspective as a position in which one derives individual benefits from the preceding acts agreed upon in the official capability. Agency problem being conflict of interest incorporated in any association whereby one partner is to act at the benefit or interest of another, which exists between stakeholder’s company and its management, even though it is to the mangers best of interest ,they intend on maximizing the wealth of the stakeholders by making proper decisions. One of the aims of many organizational conflicts are as a result of pressure between one’s motivation to act in on the basis of their own self gain and effort to authoritative rules of the institution to bring back the social esteem back such as morality and justice. The interaction between ethical motivation and self-interest is

    Read More

  • Health Care Stakeholders Analysis

    1010 Words  | 5 Pages

    There are many stakeholders involved with health care administrations. Those stakeholders can be patients, health care physician, insurance providers, pharmaceutical manufactures, hospital organizations, community clinics and government. Each different stakeholder has their own individual vision of health care administration. This causes conflict due to the nature and differences in vision. which then can cause conflicts among each stakeholder involved.

    Read More

  • Life After People By Andy Goldsworthy Analysis

    1074 Words  | 5 Pages

    Andy Warhol once said, “They always say time changes things, but you actually have to change them yourself”. Change is affected by time and by people in different ways. A negative change can ultimately have a positive outcome. Change is not always bad, but in order for it to be good you need to make it good. Change occurs all the time, and it happens to everyone at one point in his or her life.

    Read More

  • The Importance Of Change In Ken Liu's 'Mono No Aware'

    1041 Words  | 5 Pages

    Since the beginning of the Earth, humans have slowly shown Earth how they can adapt to the surroundings that change ever so slightly. Change is an occurring theme that forces humans with decisions that affect the rest of their lives. It alters our thinking, understanding, and morals. Unlike other organisms, feelings are also a major impact that drives humans to form extensive choices. This alone causes some humans feel as if it is the biggest compelling reason to change based on how they feel about something or someone.

    Read More

  • Social Media Influence In Pop Culture

    1129 Words  | 5 Pages

    However, people’s preferences over things are constantly changing. This is why no one can ever tell how long will

    Read More

More about Structural Role Of Auditing

Open Document