Auditing Issues - TR Week 10
Most people have the same feeling when they hear the word audit. It usually implements fear in a person, even though that person may have done nothing wrong. Fear is common when the auditors are being brought in because most people don't know what to expect. This is also true when audits are being done for businesses.
I know from personal experience that the auditors are not always greeter with kindness. I currently working in an accounting firm and have had the privilege to go on audits with my company even though I do not yet have my degree. People need to understand that the auditors do not need to be fear but need to be respected for what they are doing. It is not an auditors goal to ruin someone or a company. It is there job to make sure people are following the rules and standards that are put in place for everyone.
In my paper I plan to discuss some of the common auditing issues the world is facing today. I do not want to just focus on one auditing issue because there are so many that can lead to big problems for a company. The following will be the top five issues I have found while doing my research on auditing issues.
The first issue I would like to discuss is the gathering of sufficient audit evidence during the audit process. One of the reasons that gathering evidence is so important is because it backs up the information that a company or an individual is supplying the auditor. This is one way the auditors get their information. This being the case it means that the auditors need to question management when they might see a deficiency in any of the accounting materials. If they do not question the materials then they are not fully performing their job. (Beasley, Carcello, & Hermanson, 2001)
In an article written by Kathleen Hoffelder 87 cases where the SEC was investigating fraud, 73 percent of those cases did not have sufficient audit evidence. These cased were pulled from 1998 to 2010. One...
References: Accounting Concern. (2013). Professional Skepticism. Retrieved from Accounting Concern: http://www.accountingconcern.com/accounting-dictionary/professional-skepticism/
AICPA. (2013). AU Section 333; Management Representations. Retrieved from AICPA: http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-00333.pdf
AUASB. (2012, August ). Professional Scepticism in an Audit of Financial Report. Retrieved from AUASB Bulletin: http://www.auasb.gov.au/admin/file/content102/c3/Aug12_AUASB_Bulletin_Professional_Scepticism_in_an_Audit_of_a_Financial_Report.pdf
Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (2001, April). Top 10 Audit Deficiencies. Retrieved from Journal of Accountancy: http://www.journalofaccountancy.com/Issues/2001/Apr/Top10AuditDeficiencies
For Dummies. (2013). What 's in an Auditor’s Report: Opinions, Good and Bad. Retrieved from Dummies.com: http://www.dummies.com/how-to/content/whats-in-an-auditors-report-opinions-good-and-bad.html
Hoffelder, K. (2013, May 10). Top Audit Deficiency: Evidence Collection. Retrieved from CFO: http://www3.cfo.com/article/2013/5/auditing_audit-sec-sarbanes-oxley-caq-
ISACA. (2013). Due Professional Care. Retrieved from ISACA: ISACA
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