Financial audit, Financial Management

Assignment Help:

To begin this topic, the case of China Sky describes the appointment of a special auditor  in the organization that is also a rule in the procedures of Singapore Exchange (SGX). There is some argument that presents the arguments in the favour of audit firm partners to join the audit committees along with the some arguments against it. The firms should allow audit firm partners and/or employees to join audit committees because it would help to investigate the mutual transactions between the audit committee chairman and the company that is the first argument. The other argument is that the committee would find out the reason behind the failure of land acquisitions in the country of the china (MediaCorp Pte Ltd, 2013). Both arguments are effective for the management of China Sky because the appointment of the auditor would help the company to follow the instructions of the stock exchange that also help the company to hold the interest of the market and stakeholders for managing the profitability concepts.

On the other hand, by the appointments of the auditors, the management of the company could also retain the transparency factors at the time of financial transactions that is very necessary for the listed organization because any hidden processes would affect the confidence of investors in the growth figure of the company that could reduce the per share value of the organization and would influence the reputation in market negatively (MediaCorp Pte Ltd, 2013). The argument against the appointment of auditors is that there was no justification for the directive that would be used by the auditors at the time of financial audit. Without the proper justification, the working of auditors could increase the conflicts between the auditing committees that would make the failure of auditors' appointments with the organizations.


Related Discussions:- Financial audit

What do you signify by cost of capital, Q. What do you signify by Cost of C...

Q. What do you signify by Cost of Capital? What do you signify by 'Cost of Capital'? What is its meaning and what are the problems in determination of cost of capital? Ans.

Define modern approach of financial management, Define Modern Approach of f...

Define Modern Approach of financial management Modern approach views the term financial management in a broad sense and provides a conceptual and analytical framework for fina

OPERATING CYCLE, DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE TO APOULTR...

DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE TO APOULTRY BUSINESS (BROILERS)

What is alternative minimum tax, Q. What is Alternative Minimum Tax? Al...

Q. What is Alternative Minimum Tax? Alternative Minimum Tax (AMT) - Tax imposed to back up the regular income tax imposed onCORPORATION and individuals to guarantee that taxpay

Which type of financing is appropriate to firm, This case provides the oppo...

This case provides the opportunity to match financing alternatives with the needs of different companies. It allows the reader to demonstrate a familiarity with different types of

Provide three examples of mutually exclusive projects, Provide three exampl...

Provide three examples of mutually exclusive projects. Mutually elite projects are projects that compete against each other for our selection.  If a firm were considering the b

Explain economic exposure to exchange risk, How would you explain economic ...

How would you explain economic exposure to exchange risk? Answer: Economic exposure can be illustrated as the opportunity that the firm’s cash flows and so its market value may

Difference international and domestic financial management, How is internat...

How is international financial management different from domestic financial management? Answer:  There are three main dimensions that set separately international finance from

Expalin purchase outright and leaminger plc, LEAMINGER PLC (a) Purchas...

LEAMINGER PLC (a) Purchase outright (2) Balancing allowance Tax effect = 93,906 × 30% = 28,172 Finance lease Annuity Factor (AF) at 10% for 4 year

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd