Professional Documents
Culture Documents
Spring 2010
Ethics in Auditing: The Auditing Function Duska and Duska The main role of the independent auditor
Trust What would happen if everybody misrepresented the financial health of their company when it was to their advantage to lie?
The Auditors Responsibility to the Public What are the differences between an auditor and, for example, an attorney when it comes to the relationship to the paying client?
The Auditors Basic Responsibilities Financial statements presented fairly in accordance with generally accepted accounting principles
According to Duska and Duska, what is the relationship between fair presentation and GAAP?
Business Ethics
Spring 2010
Auditor independence freedom from those pressures and other factors that compromise, or can reasonably be expected to compromise, and auditors ability to make unbiased audit decisions
Why do Duska and Duska claim that Compliance with the rules is a necessary, but not a sufficient, condition for independence?
4 activities necessary to evaluate auditor independence: 1. Assessing the level of independence risk
Conclusion Do you agree with Duska and Duskas claims about the responsibilities of the independent auditor?
Business Ethics
Spring 2010
The Structural Origins of Conflicts of Interest in the Accounting Profession Colin Boyd Conflicts of interest in large audit firms
The Modern Evolution of Public Accounting Firms The rise of national organizations, the merging of accounting firms, and auditing as low profit
What is opinion shopping and why did it begin to create conflicts of interests in auditing?
The Pressures on Labor Inputs Competitive prices, Reducing costs, and Labor as the main cost of auditing
Increased employment of junior auditors, and auditors being employed by audit clients
What conflicts of interest were created by the practice of auditors being hired by the firms audit clients?
The Strategy of Horizontal Integration The benefits of a low cost audit paving the way for high cost consulting services
Conflicts of Interest between Auditing and Consulting What conflicts of interest were created from the sale of consulting services to audit clients?
Business Ethics
Spring 2010
The Power and Influence of the Big Five The power of the Big Five and conflicts of interest within the accounting institutions
The power of the Big Five and conflicts of interest within the political system
Will the Sarbanes-Oxley Act Work? Reducing, but not eliminating, conflicts of interest
The Future Evolution of the Profession Why is Boyd skeptical that the accounting profession is capable of self-regulation?