Reference no: EM132335075 , Length: 1100 Words

Auditing Assignment -

According to your textbook, "The foundation of a profession lies with its ethical values". Your text mentions "the increasing complexity of business and the significant role of accountants and auditors as moral agents...quality audits do not just involve technical competence, but require ethical competence and sound judgement".

According to ASIC's Greg Medcraft, "The quality of Australian corporate audits is appalling and getting worse, potentially leading to an Enron-style corporate collapse".

According to Shamus Rae, a partner at KPMG, "AI will increase our audit quality, as it begins to allow us to ask a lot more questions. It will improve efficiency in what we do and it will provide more insight".

According to Sikka et al., (2009, pp.136-7), "The auditing model, it is argued, is fundamentally flawed as it makes auditors financially dependent upon companies and persuades them to prioritise their own economic interests at the expense of other parties which may have an interest in audits. In professional circles, audit is frequently associated with using appropriate techniques. Such a focus neglects the organisational and social context of auditing and thus little attention is paid to how audits are manufactured, or the incentives to audits to produce good audits".

Required -

Discuss the opportunities and challenges for the auditing profession under the Australian auditing model. You also need to address the recent regulatory attempts to improve the audit quality in Australia.

You need to support your discussion with suitable examples and relevant cases - both recent and past.

Important: In developing your viewpoint, you need to examine the issues raised in the above excerpts.

Attachment:- Auditing Assignment File.rar