You know this is the real deal, when accessing the same chapter in my textbook is almost word for word the same main points. Really appreciate this content, almost done with my accounting degree :D
Essentially any conflicts with management, internal controls (or lack of), adherence to regulations and compliance in general, possibly finding out why the client decided to hire new external auditors, any limitations encountered. (some examples, I'm still learning too).
Companies are required to create and disseminate financial statements annually. These statements may be put together by their accounting department and audited by an "internal auditor". Afterwards, they must hire an external (independent) auditor to validate (or provide assurance) the integrity of those statements, examine internal controls, sample transactions, look for fraud, etc. The SEC requires public companies to disseminate this information and for ethical reasons they must hire an external auditor that has no "benefit" in subordinating their objectivity.
You know this is the real deal, when accessing the same chapter in my textbook is almost word for word the same main points. Really appreciate this content, almost done with my accounting degree :D
Concise and clear. The best. What I needed. Thank you so much
Wouldn't it be better for your reputation to catch & report the next Enron than to avoid them?
What would you ask the predecessor auditor? After the client waived you
Essentially any conflicts with management, internal controls (or lack of), adherence to regulations and compliance in general, possibly finding out why the client decided to hire new external auditors, any limitations encountered. (some examples, I'm still learning too).
Very Helpful just what I need for my assignment.
Background history!
Thx
Why do companies pay to be audited? If companies are participating in non-ethical behaviors why would they hire an independent auditing firm?
Because of the regulatory frameworks that requires public companies to be audited
Companies are required to create and disseminate financial statements annually. These statements may be put together by their accounting department and audited by an "internal auditor". Afterwards, they must hire an external (independent) auditor to validate (or provide assurance) the integrity of those statements, examine internal controls, sample transactions, look for fraud, etc. The SEC requires public companies to disseminate this information and for ethical reasons they must hire an external auditor that has no "benefit" in subordinating their objectivity.
Thank you for this😃