Auditing Profession - Example - 1610 Words

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Arens, Elder, Beasley, 2010). Auditing should be done by a competent, independent person. Accounting is the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making (Arens, Elder, Beasley, 2010). Many people confuse auditing with accounting because auditing is usually concerned with accounting information, and many auditors have a considerable amount of experience in the accounting profession. This confusion results from the certified public accountant title given to†¦show more content†¦Internal audit experience can be used to fulfill the experience requirement for becoming a CPA (Arens, Elder, Beasley, 2010). The AICPA is the organization that sets professional requirements for CPAs. The AICPA also conducts research and publishes materials on many different subjects related to accounting, auditing, management advisory services, and taxes (Arens, Elder, Beasley, 2010). The organization also prepares and grades the CPA examinations, provides continuing education to its members, and develops specialty designations to help market and assure the quality of services in specialized practice areas (Arens, Elder, Beasley, 2010). The Public Company Accounting Oversight Board provides oversight for auditors of public companies, including establishing auditing and quality control standards for public company audits, and performing inspections of the quality controls at audit firms performing those audits (Arens, Elder, Beasley, 2010). The PCAOB has responsibility for establishing auditing standards for public companies, while the Auditing Standards Board (ASB) of the AICPA establishes auditing standards for private companies. The ASB previously had responsibility for establishing auditing standards for both public and private companies (Arens, Elder, Beasley, 2010). Existing auditing standards were adopted by the PCAOB as interim auditing standards for public company audits (Arens, Elder, Beasley, 2010). Generally Accepted Auditing StandardsShow MoreRelatedNature of Auditing and the Public Accounting Profession1163 Words   |  5 Pages Nature of Auditing and the Public Accounting Profession 1. Auditing neither creates goods nor adds utility to existing goods and therefore does not add value to business. Auditing exists only because it has been legally mandated. Auditing exists because it is needed by the company. It is beneficial to users who need assurance if their financial statements reflect economic conditions that occurred in a period. Without reliable information, companies might make less effective decisions whichRead MoreAdelphi Accounting Scandal Case Study1511 Words   |  6 Pagesclimate in the auditing profession, a consequence of the apparent role that auditors played in some of the scandals. SOX mandated that auditors cannot audit the same companies for which they provide consulting services, as this link was perceived to result in audit teams being pressured to perform lax audits in order to secure more consulting business from the clients. There were other provisions in SOX that increased the regulatory burden on the auditing profession in response to lax auditing practicesRead MoreThe Effect Of Sarbanes Oxley On Accounting Essay1253 Words   |  6 Pagespublic company boards, management and public accounting firms. After Sarbanes Oxley law came out, the effects on the whole business market has changed a lot. Also, the law took a big challenge on the governance, tax, implementation and accounting profession. Problem before Sarbanes Oxley The financial report during the late 1990s and early 2000s had less public confidence in the auditor’s performance. The first issues are on the rise of non- audit, consulting and service. At that time, clients wereRead MoreChallenges Faced By Big Data945 Words   |  4 PagesChallenges Although the opportunities for Big Data in auditing are plentiful, there are also challenges that arise. One of the biggest challenges for Big Data is how it may affect the quality of auditors’ judgements. When dealing with large amounts of Big Data, auditors must maintain the standards of independence and professional skepticism. They must not let company’s Big Data findings significantly influence their audit opinion to the point where they succumb to audit risk and issue the wrongRead MoreBig Data And Business Innovation1665 Words   |  7 Pagesways. It has become important primarily for business decision making. One aspect of business that Big Data is now affecting is the auditing profession. Many opportunities exist for Big Data to improve the standard auditing procedure. However, certain challenges may prevent it from assisting in its full potential. In addition to challenges in the auditing profession, Big Data also has its own ethical implications. In this report, all of these facets of Big Data will be discussed in detail. DefinitionsRead MoreAudit Expectations Gap1349 Words   |  6 PagesIntroduction Within the current crisis of confidence in the public accounting profession after the Enron debacle and series of high profile failures of financial services firms, the issues about ‘audit expectation gap’ have never been more important. Though it would take an enormous amount of effort to address these issues, I will argue that tremendous amounts could be done in order to close the gap down. In this essay I will discuss some of these issues and in particular the strategies to reduceRead MoreAudit Planning And The Audit1215 Words   |  5 Pages(International Auditing and Assurance Standards Board)reveals characteristic similarities and differences, which have an overall impact on the performance of the audit. Audit planning is carried in accordance with the guidelines of the specific accounting body. Therefore, in doing so, the Auditor need to identify the jurisdiction under which a firm falls under to establish which standards to adopt. According to PCAOB, an audit planning should be done in accordance to PCAOB standards (Auditing StandardRead MoreInternational Standard On Auditing Standards1745 Words   |  7 Pagesaccounting and auditing standards is desirable. In this essay, I am going to evaluate the challenge of convergence, why it is necessary and the benefit it brings back for an economy. 1. Background International Standard on Auditing (ISAs) is defined as â€Å"professional standards that deal with the independent auditor’s responsibilities when conducting an audit of financial statements†. All these standards are issued by International Federation of Accountants (IFAC) through the International Auditing and AssuranceRead MoreProfessional Skepticism Throughout A Winter Quarter Auditing Internship1437 Words   |  6 Pagesprofessional skepticism throughout a winter quarter auditing internship. Third, as described in PCAOB Audit Staff Practice Alert No. 10, the PCAOB plans to explore meaningful ways to enhance auditor’s professional skepticism. Therefore, contained in section three is a proposal which provides justification for an implementation that may enhance the application of professional skepticism throughout the auditing profession. In culmination of discussing these examples, professional skepticism should stand outRead MoreGenerally Accepted Auditi ng Principles1187 Words   |  5 PagesGenerally Accepted Auditing Principles Generally Accepted Auditing Principles There are many different types of audits including financial statements audit, the operational audit and the compliance audit. Either an internal auditor or an external auditor from another firm can conduct these various audits. â€Å"The American Accounting Association defines auditing as a systematic process of objectively obtaining and evaluating the accounts of financial records of a governmental, business,