Auditing Is A Systematic Process Of Obtaining And Evaluating The Evidence Regarding Assertions

1447 Words Sep 26th, 2015 null Page
What is auditing? “Auditing is a systematic process of obtaining and evaluating the evidence regarding assertions." "Auditing is about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users” (Messier, William, Steven Glover, and Douglas Prawitt). According to federal laws, public companies are required and responsible for the preparation of financial statements that are accurate and meet the standards of the accepted accounting principles. Once financial statements were processed over to a public accountant, they start the auditing process. The management’s responsibility is to review the creditors, stockholders and the accuracy of the financial statements. The auditor is the depended on by management and those who are requesting the statements, the management is held accountable for false information. If financial reporting issues were to occur the pressure of the firm can be affected and will cause the auditor’s decision to fix the reporting financial issues. Currently, companies are interpreting whether it’s good to change auditors within a short period or after a long period. In this report, we inform and describe what auditing is, mandatory audit firm rotation, the current auditor independence requirements, and the pros and cons of an audit firm rotation. According to Sarbanes-Oxley Act of 2002, mandatory rotation refers to "the imposition of a limit…

Related Documents

Face off | Scared Rider Xechs English Subbed | Comédie