Legitimate off-shoot or conflict of interest?
Article Abstract:
There is a large amount of controversy surrounding the issue of whether auditors should be allowed to provide audit clients with non-audit services. People who support a separation of audit and non-audit functions believe that combined services will promote increased fee dependence, help undermine auditors' roles as independent auditors, and result in auditors reviewing and appraising their own work. Those e in favor of the current combination of services believe that there are significant economic benefits. They feel auditor independence will be maintained by economic incentives. The separate disclosure of fees paid to auditors for non-audit services has been forwarded as an alternative to either legislative position.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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Example 6 - an example to follow?
Article Abstract:
Auditors cannot rely wholly on management representations, but there are times when it is appropriate to rely on them to some extent. There are small business audits in which a total disclaimer is unnecessary, even though there is insufficient evidence available to allow for an unqualified opinion. The Auditing Standard 'Qualifications in Audit Reports' contains an Example 6 in its accompanying Auditing Guideline of what the form and content of such a limited qualification should be. Various research studies undertaken in 1985 and 1986 indicate that the Example 6 qualification is used in more than 25 percent of small company audits.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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Does care extend beyond the contract?
Article Abstract:
UK judge Sir Neil Lawson has ruled that company auditors for a firm called Fidelity had no 'care' responsibility to Caparo industries PLC, which was attempting to gain control of Fidelity. Caparo failed but sued Touche Ross, Fidelity's auditors, for misstatements about the condition of the firm. Lawson's ruling only addressed the care issue, stating that the auditors had no close relationship to Caparo, indicating a lack of duty or responsibility. He stated that Fidelity was a private company, free to dispose of its shares, and that the auditors were not required to know of a direct relationship between Fidelity and any investor.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1988
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