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Author: Roberto Niesing
Publisher: GRIN Verlag
ISBN: 3638069478
Category : Business & Economics
Languages : en
Pages : 21
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Book Description
Seminar paper from the year 2007 in the subject Business economics - Revision, Auditing, grade: 1,0, University of Glamorgan, language: English, abstract: The Assignment describes and analyses the strengths and weaknesses of the oversight over the auditing profession in the UK and USA. Also different important points were examined and critically discussed. In the film ‘Enemy of the state’ (2007) the American government wants to pass a law which allows wide observation which would endanger privacy. To reach this goal, Senator Reynolds even kills an opposing politician who had tried to avoid this act. At the end of the movie a simple question can be asked: “who controls the controller?”. The same issue was relevant when Enron became spectacularly bankrupt. This big conglomerate was audited by the accountancy firm Arthur Andersen. Andersen’s company also offered Enron non-audit services like book-keeping and consulting. Through this lack of independence, the auditors were trapped in a big conflict of interest and could not do their work. Since this huge disaster many changes in the oversight of auditing have taken place. Especially in the USA and the UK, control of auditing was reformed by the government. The following sections will provide detailed descriptions of the oversight systems in both countries. Afterwards a discussion and a critical analysis will outline the pros and cons for each regulation scheme and a consideration of the best way to point out the advantages and chances for oversight profession will be presented.
Author: Roberto Niesing
Publisher: GRIN Verlag
ISBN: 3638069478
Category : Business & Economics
Languages : en
Pages : 21
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Book Description
Seminar paper from the year 2007 in the subject Business economics - Revision, Auditing, grade: 1,0, University of Glamorgan, language: English, abstract: The Assignment describes and analyses the strengths and weaknesses of the oversight over the auditing profession in the UK and USA. Also different important points were examined and critically discussed. In the film ‘Enemy of the state’ (2007) the American government wants to pass a law which allows wide observation which would endanger privacy. To reach this goal, Senator Reynolds even kills an opposing politician who had tried to avoid this act. At the end of the movie a simple question can be asked: “who controls the controller?”. The same issue was relevant when Enron became spectacularly bankrupt. This big conglomerate was audited by the accountancy firm Arthur Andersen. Andersen’s company also offered Enron non-audit services like book-keeping and consulting. Through this lack of independence, the auditors were trapped in a big conflict of interest and could not do their work. Since this huge disaster many changes in the oversight of auditing have taken place. Especially in the USA and the UK, control of auditing was reformed by the government. The following sections will provide detailed descriptions of the oversight systems in both countries. Afterwards a discussion and a critical analysis will outline the pros and cons for each regulation scheme and a consideration of the best way to point out the advantages and chances for oversight profession will be presented.
Author: Ecaterina Volosin
Publisher: GRIN Verlag
ISBN: 3640192036
Category : Business & Economics
Languages : en
Pages : 19
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Book Description
Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,0, University of Glamorgan (Business School), course: International Accounting & Audit, language: English, abstract: This paper provides an overview of the current regulatory frameworks for financial reporting and auditing in the UK, US and Germany. During the last years these frameworks were noticeably changed. These changes arose especially from political interest in accounting regulation following the Enron collapse. The main change in the US was the introduction of the Sarbanes-Oxley Act containing strict regulations for auditors, including their responsibilities and services. It also contains a list of prohibited audit activities, the so-called “non-audit” services. The main feature of the Act was the creation of an oversight board to regulate and control auditors of public companies. Thus the “Public Company Accounting Oversight Board” was established. The PCAOB is a private-sector non-profit overseer, supervised by the US Securities Exchange Commission (SEC) which regulates basically anything related to the securities market. Following the collapse of Enron and the turbulence in the UK markets that followed, a review of financial regulation in the UK was ordered, covering for example auditor independence, corporate governance, financial reporting and auditing standards and accountability of audit firms. In order to restore credibility in UK accounting the Financial Reporting Council (FRC), an independent private sector body funded by the accountancy profession, was set up. The FRC has several subsidiary bodies, including the Professional Oversight Board (POB) providing independent oversight of the regulation of the auditing profession. The German Auditor Oversight Commission (AOC) was established according to the Auditor Oversight Law. It is in charge of the public oversight of all activities of the German Chamber of Public Accountants (WPK) with respect to statutory auditors. The Commission has the ultimate responsibility in the areas of licensing, registration, disciplinary investigations and quality assurance, all with respect to members of WPK entitled to provide statutory audit services (WPK, n.d.). It is argued that these new regulations impose another layer of bureaucracy with significant costs for very little apparent gain. But ethical issues surrounding the public’s perception of auditor performance need to be addressed, not just for the sake of the profession, but for the efficiency and effectiveness of capital markets in general (Malthus and Scoble, 2005).
Author: Ecaterina Volosin
Publisher: GRIN Verlag
ISBN: 3640192303
Category : Business & Economics
Languages : en
Pages : 41
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Book Description
Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,0, University of Glamorgan (Business School), course: International Accounting & Audit, 23 entries in the bibliography, language: English, abstract: This paper provides an overview of the current regulatory frameworks for financial reporting and auditing in the UK, US and Germany. During the last years these frameworks were noticeably changed. These changes arose especially from political interest in accounting regulation following the Enron collapse. The main change in the US was the introduction of the Sarbanes-Oxley Act containing strict regulations for auditors, including their responsibilities and services. It also contains a list of prohibited audit activities, the so-called "non-audit" services. The main feature of the Act was the creation of an oversight board to regulate and control auditors of public companies. Thus the "Public Company Accounting Oversight Board" was established. The PCAOB is a private-sector non-profit overseer, supervised by the US Securities Exchange Commission (SEC) which regulates basically anything related to the securities market. Following the collapse of Enron and the turbulence in the UK markets that followed, a review of financial regulation in the UK was ordered, covering for example auditor independence, corporate governance, financial reporting and auditing standards and accountability of audit firms. In order to restore credibility in UK accounting the Financial Reporting Council (FRC), an independent private sector body funded by the accountancy profession, was set up. The FRC has several subsidiary bodies, including the Professional Oversight Board (POB) providing independent oversight of the regulation of the auditing profession. The German Auditor Oversight Commission (AOC) was established according to the Auditor Oversight Law. It is in charge of the public oversight of all activities of the German Chamber of Public Accounta
Author: Reiner Quick
Publisher: Routledge
ISBN: 1134060246
Category : Business & Economics
Languages : en
Pages : 302
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Book Description
In this important new book, the European Auditing Research Network gives a timely appraisal of the regulatory environment for financial accounting and auditing in the wake of a series of high profile scandals involving major corporations.
Author: Gary Kleinman
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The importance of fostering more accurate audits has been heightened by a series of high-profile accounting scandals at the beginning of the millennium. These scandals prompted more stringent regulations over corporate governance and financial reporting and the creation of audit oversight bodies as the Public Accounting Oversight Board (PCAOB) in the U.S. and the Public Oversight Board (POB) in the UK. In parallel, the growing globalization of business has brought forth calls for adherence to a common set of International Financial Reporting Standards (IFRS). Even if a common standard is promulgated, it will not lead to similar results if implementation differs across countries. Therefore, it is important to investigate the auditing regulatory regimes in different nations and the status of cross-border audit inspections. Accordingly, we begin by describing the cross-national institutions (e.g., the International Federation of Accountants [IFAC]) that impact national regulatory choices. Then we survey the audit regulatory practices of public company auditors of a select group of major economic powers and based on this analysis, we discuss the challenges and obstacles to engaging in intra-national audit, cross-national audit/inspections and the challenges posed by differences in auditing standards used in various linked (e.g., by joint ventures, etc.) nations. We include in this discussion the effects of national culture, investor legal protection, economic development and differing financial standard sources.
Author: United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets and Government Sponsored Enterprises
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 356
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Book Description
Author: El Bachir Boukherouaa
Publisher: International Monetary Fund
ISBN: 1589063953
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Author: Mary Kathleen Harris
Publisher:
ISBN: 9781339970684
Category :
Languages : en
Pages : 114
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Book Description
This study examines the influence of audit committee professional diversity (defined as the variation of group knowledge resulting from group members' differing current and past professional experiences) on the committee's effectiveness. Using U.S. companies from 2003-2013, the results show a positive association between the professional diversity of the audit committee and financial reporting oversight, measured alternately as reduced financial statement misstatements, material weakness disclosures, or consecutive material weakness disclosures. Moreover, connections to another professionally diverse audit committee reduce the likelihood of financial statement misstatements and material weakness disclosures. These results suggest that professional diversity benefits audit committee effectiveness to a point, but that too much diversity might result in tension among audit committee members and limit the benefits of diversity.
Author: United States Accounting Office (GAO)
Publisher: Createspace Independent Publishing Platform
ISBN: 9781720367093
Category :
Languages : en
Pages : 28
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Book Description
Accounting Profession: Oversight, Auditor Independence, and Financial Reporting Issues
Author: Minlei Ye
Publisher:
ISBN:
Category :
Languages : en
Pages : 64
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Book Description
This paper analyzes the impact of Public Company Accounting Oversight Board (PCAOB)-type regulatory oversight on audit quality, audit value, and the audit market under different legal systems. Conventional wisdom suggests that regulatory oversight may be just a simple addition to a legal system as an alternative discipline mechanism. According to this perspective, the addition of another disciplinary mechanism does not necessarily increase audit effort, since once effort meets the auditing standards, auditors have no incentive to provide a higher level of effort. In this case, a strong legal system is a sufficient deterrent and regulatory oversight can impose an extra burden on auditors without enhancing audit value. Our analysis, in contrast, suggests that regulatory oversight can improve audit value even when the legal system is strong. This is because auditors will provide higher assurance by improving their effectiveness in detecting material misstatements. When the legal system is weak, regulatory oversight can improve audit value, but it cannot substitute for a strong legal system completely. This is the first study that analyzes the possible effects of an audit regulator on auditors, and our results enhance understanding of the complex relationship between regulatory oversight, legal system strength, and audit value.
