AUDITING & ACCOUNTING ETHICS

AUDITITNG AND ACCOUNTING ETHICS

importance of an audit dependence of an audit

external and internal auditors

use of audit report and changes of audit report

auditors liability

1 (a ) purpose of an audit

Managers are appointed to look after the property of the owner who has appointed them . The manager and directors are normally required to issue annual reports and accounts of the company to the shareholders and all other interested parties like customers , suppliers , government , advisors of the company , and regularity bodies among them . The company financial reports

are produced by its accountants . the people who rate involved in the issue or preparatory of the reports that is managers , directors employees , accountants ) can give information which is false and misleading to benefit themselves but users of this financial reports require information which is more reliable hence need for an independent person to give them opinion that information issued is credible

The routine procedure cannot be effective to detect 64 ,000 phone insurance and 25 m counterfeit bonds and 200 m missing assets simply because of the complexity of the company transactions and remoteness of the users if financial information provided . Therefore the reasons why a need for an independent auditor arises are

The reports issued may contain some errors unless this errors are discovered and investigated by an independent person , then the information provided can be misleading

The information from the reports to detect any fraudulent activities

The reports can be deliberately misleading to as to hide something bad...