Audit Theory and Practice Article Example | Topics and Well Written Essays - 2000 words

Audit Theory and Practice - Article Example This requires of the auditor to issue a 'statement of independence' containing a number of declarations such as: As per information derived from literature sources, the major criteria of a standard auditing process are: professional ethics, auditors' legal liability, audit risk, accepting the engagement and planning the audit, internal control over auditing process, audit sampling, designing substantive procedures, auditing different financial instruments and completing and reporting the audit (Cosserat, 2004, Eilifsen & Messier, 2006). Each of these core criteria will later be examined for strengthening our core argument that successful auditing can only ensue from a high degree of dissimilarity between auditors and the company being audited. The independence of auditors for various business activities has been ensured over a long period of time based on unsavoury corporate scandals such as Enron in 1997. At present, the International Federation of Accountants (IFAC) as part of its standard code of ethics (revised rules) has proposed the following structural changes in auditing activities: 1. 1. Taking a 'conceptual approach' to independence: This is an approach which reconciles any perceived threat to independence of auditors, accepts safeguards and takes appropriate steps (interventions) to eliminate threats (Liandu, 2002). 2. No one fixed set of rules: Under IFAC guidelines, it's no longer possible to allow just one set of rules for a given auditing scenario. This is because each specific scenario is now recognised for its own merit in order to generate a set of financial instruments for the auditing activity (Liandu, 2002). 3. The importance of assurance services: In addition to company data, auditors are now encouraged to increasingly rely on secondary data such as performance indicators, statistical information, market and media reports, systems and processes and compliance with regulatory guidelines (Liandu, 2002). The purpose of assurance services is to enhance the credibility of overall information at the disposal of the auditor. 4. Safeguards mechanism: The general principle is that any kind of self-interest, self-review, advocacy, familiarity and intimidation can threaten auditing independence (Liandu, 2002). A number of safeguards are hence, proposed. Regulatory enforcement of independence requirements, external review of a firm's quality control service, keeping technical data up-to-date, a corporate governance structure which provides oversight to services provided by a firm, communications about independence, rotating senior personnel and performing annual review of the auditing exercise (Liandu, 2002). With regard to Cosserat (2004) core criteria of auditing

Development And Establishment Of Public Relations Essay

Development And Establishment Of Public Relations - Essay Example This has resulted from an unorganized approach toward industrialization. The knowledge in old generations was far less than what modern people are equipped with. People were less educated and were unaware of the pros and cons of the emerging technology. Emphasis was more on the development of industries rather than on the consideration of their positive and negative environmental, cultural, social and political aspects. There was an urge to invent more and more, and in the hustle and bustle, nobody really cared how the new industries should be located to enhance cooperation among them and reduce side effects on the society. It is said that it is far easier to rectify a mistake in the start than otherwise. Very less importance was given to the planning and organization of technology and industries in the past which has resulted in the evolution of factors so evil, which have made human life difficult on the planet. This has happened for a variety of reasons.There used to be little or no transport at all. Making long journeys consumed a lot of energy of the people of that age. Industrialization is no doubt beneficial for the social and economic development of a country, but the way the industries are located, their construction is organized or what thereafter effects certainly make a lot of difference, whose effects can be judged by the level of satisfaction of the people of that area, who are associated directly or indirectly with them, or the ones generally referred to as the stakeholders.