auditing question (1 Viewer)

[theone123]

Hey ppl,

i got a research auditing question to do.

just wondering what do you's have thoughts on it?

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The Auditing and Assurance Standards Board (AUASB) released 35 revised Auditing Standards, together with the Foreword to the AUASB Pronouncements and the AUASB Glossary on 1 May 2006. The new standards conform to International Standards on Auditing and also emanate from the implementation of the Federal Government’s Corporate Law Economic Reform Program (CLERP 9) initiatives, which were aimed at enhancing the credibility of audited financial reports in Australia and thereby improving investor confidence.

Required

Identify the major changes that occurred as a result of the issue the revised standards referred to above and discuss how these changes were aimed at enhancing the credibility of financial reporting. (15 marks) (2 written pages)

 

[turtleface]

Basically the word shall is being used instead of should and are now law.

Increased documentation requirements follow since you need evidence of correct procedures to both follow the standards and to defend urself if your arse gets sued.

This results in audit fees going up/auditors costs going up. In the end everyone loses except for paper manufacturers. Oh theres also more jobs for auditors but they probably get paid less.

Enhancing the credibility of financial reporting? Not much. The credibility does suck a bit but what can you do, its the best indicator that you can get even if its very bullshitty. THe alternative to this crappy financial reporting is no reporting.

 

[stevenzjl]

i have the similar question.
could you give us some relative material to read?

 

[turtleface]

Auditing and Assurance services - Gay, Simnett
Modern Auditing and Assurance services- Leung, Cooper, Coram,

 

[seremify007]

I don't know enough about this to make a definitive/accurate statement.

As a tip, try comparing the sections which auditors sign off on in this year compared to prior years.

 

[stevenzjl]

could you list the factors that could influence the credibility of audited financial reports ? and board explain how these factors work?

 

[seremify007]

could you list the factors that could influence the credibility of audited financial reports ? and board explain how these factors work?

Is this an actual textbook question or what? I'm curious to hear what the books say about it first.