Auditors ethics be challenged while performing an audit

Assignment Help Financial Management

Reference no: EM13849083

It is the responsibility of management to apply accounting standards when communicating with investors and creditors through financial statements. Another group, auditors, serves as an independent intermediary to help ensure that management has in fact appropriately applied GAAP in preparing the company's financial statements. Auditors examine (audit) financial statements to express a professional, independent opinion. The opinion reflects the auditors' assessment of the statements' fairness, which is determined by the extent to which they are prepared in compliance with GAAP.

Some feel that it is impossible for an auditor to give an independent opinion on a company's financial statements because the auditors' fees for performing the audit are paid by the company. In addition to the audit fee, quite often the auditor performs other services for the company such as preparing the company's income tax returns.

How might an auditor's ethics be challenged while performing an audit?

Reference no: EM13849083

Questions Cloud

Compare two leaders one of whom be a business leader : Compare and contrast two leaders, at least one of whom must be a business leader. Which of the two was the more effective leader? Why?

Write c program to find the distance travel : Write C program to find the distance travelled at regular intervals of time given the values of 'u' and 'a'. The program should provide the flexibility to the user to select his own time intervals and repeat the calculations for different values of '..

Project requires an initial cash outlay : A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s IRR?

What is the shape of the fractur of brittle material : What is the shape of the fractur of brittle material after applied th tensil test.

Auditors ethics be challenged while performing an audit : It is the responsibility of management to apply accounting standards when communicating with investors and creditors through financial statements. How might an auditor's ethics be challenged while performing an audit?

Arginine, leucine, lysine, and valine are all amino acids : Arginine, Leucine, Lysine, and Valine are all amino acids. Lysine and Arginine are both under the category of charged polar amino acids, where they exhibit a positive charge. Leucine and Valine are both uncharged non-polar amino acids, and, as such, ..

Cost of equity for the new business using the CAPM : Suppose that firm A is considering entering a business similar to firm B, a relatively small firm in a single line of business. Firm A is currently financed with 65 % debt and 35 % equity. Firm B, the pure-play firm, has a β of 0.85 and is financed w..

What is the definition of organizational behavior : what is the definition of organizational behavior

What is the nature of financial management : Prepare 15 slides or power point presentation on "What is the nature of Financial Management".

User Account

All Pages