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Essay / Research Paper Abstract
Auditors and the audit function have been under the spotlight since the recent financial failures such as Enron. This 10 page paper considers whether or not the criticism of the auditors and the audit function been justified in relation to the above mentioned collapses. The bibliography cites 8 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEjustaud.rtf
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Unformatted sample text from the term paper:
WorldCom in the US, Parmalat in Europe and HIH Insurance in Australia. In addition to this many companies have had to restate their accounts. The criticism that has been aimed
at the way auditors have undertaken, or failed to undertake their task. However, it may be argued that there is also the influence of the expectation gap and despite some
criticism being fairly levelled it is possible that not all criticism is justified. In the light of these collapses to consider if the justification is fair the first consider
is what the task of the auditor actually is and the presence of the expectation gap, then the way that auditors have been involved in the collapses can be examined.
The job of an auditor is one that can be seen as being misinterpreted by the general public and potential investor. The
job of the auditor can be summed up simply; their job is to ensure that the accounts prepared by a company are a true and fair picture of the financial
position of the company. If this is the case they make a statement on that, this may need to be qualified with an explanation or the auditors may, in extreme
cases, may not feel able to certify that accounts as true and accurate. The problem with the perception of the auditors is
that there is an expectation gap, the expectations of the general public and even the shareholders perceive the duties of the audit as reaching further than they actually do. In
a company receiving the OK from an auditor than the public may be reassured that all is well with the company, and this may not be the case. This is
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