Roles of the auditor, Auditing

Assignment Help:

What is the role of the auditor, and what are the key duties the auditor must carry out?

Role of the Auditor

In modern commercial environmental it is desirable that businesses which are operate as companies with limited liability (usually operated by hired management) should produce accounts which will indicate how successfully they are performing. But owners of business require something more than the accounts because the managers responsible for preparing their may, either unintentionally or by deliberate manipulations, produce accounts which are misleading. An independent and examination of the accounts is needed so that owners of the business can asses how well management have discharged their stewardship.

The role of the auditors today has parallels with earlier forms of auditing the need for independent auditor was apparent when business develop in which there was a division of interests between those who carried out the day today management of undertaking and those who provided necessary finance but did not participate in management. The auditor can be seen mediators between such parties who have potentially conflicting interest. The work of auditors today is regulated mainly from two sources

1- Stature  of which co ordinance is very important

2- Profession of pronouncements on Auditing

Profession of pronouncements includes the rules of professional conduct issued by professional ladies to which auditors belong.

Kingston Cotton Mills Co. Ltd. 

In this case auditors were not held liable for negligence. It was held that it is not the duty of auditors to take stock, if they accept certificate in the absence of any suspicion, he has carried out reasonable care and skill.

Capro Industries.

In capro case the court pronounced the judgment that the auditor is only liable to present, not prospective investor, but according to latest auditing standards auditor is also liable to third party.


Related Discussions:- Roles of the auditor

Involve people in audit, How to involve people in audit? Ans) Use audits...

How to involve people in audit? Ans) Use audits as opportunities to train others. Ask for a volunteer (who is not an auditor) to walk by the audit process with you as an assista

What is transferred basis, Q. What is Transferred Basis? Transferred Ba...

Q. What is Transferred Basis? Transferred Basis - A transferred basis is the foundation of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner'

Auditor''s procedures - going concern, Auditor's Procedures - Going Concern...

Auditor's Procedures - Going Concern In forming a thought on the going to relate position of a company, the auditors have to: a) Examine the company, its plans for the futu

Ias 40 investment properties - audit evidence, IAS 40 Investment Properties...

IAS 40 Investment Properties - Audit Evidence Typical audit evidence might include: Physical verification of the situation and location of the investment property and c

Financial reporting, what is the impact of judgemental sampling on the qual...

what is the impact of judgemental sampling on the quality of a financial report

Explain audit-financial records, What is an audit, what financial records a...

What is an audit, what financial records are available and what is their individual function in completing your audit? Audit is an independent examination of financial informat

Assignment, Ask question Using analytical procedures and the information pr...

Ask question Using analytical procedures and the information provided in the appendix, perform an analysis of Cloud 9’s financial position and its business risks. Discuss the ratio

What is an external auditor’s responsibility, What is an external auditor's...

What is an external auditor's responsibility in regard to finding fraud?

What is an integrated audit, The modern integrated audit approach combines ...

The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

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