Outsiders' view obscures the real problems
Article Abstract:
The onslaught of financial fraud and company failures in the UK has encouraged the public to scrutinize existing practices of accountants and auditors. The zealousness of the public in attacking the accounting profession, however, prevents a discussion of the real issue, which concerns the outdatedness and inappropriateness of existing accounting and auditing standards in the corporate financial environment. The public has also criticized the 'cosy' relationship between auditors and corporate directors, which unknown to the public proves to be disadvantageous and highly taxing on the part of the auditors. Curbing the power of directors over auditors requires a shift in the balance of power wherein an external reference, such as the Review Panel, may be used in cases of serious dispute. Shareholders should also be given a means of alternative action in such cases.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Integrity, objectivity and independence
Article Abstract:
A detailed discussion of a Statement on integrity, objectivity and independence in auditing is presented. Integrity is described as involving the practice of truthfulness, honesty and fair dealing, while objectivity and independence are described as basing judgments solely on relevant considerations and not being influenced by other factors. The Statement identifies several threats to objectivity: the self-interest threat, the self-review threat, the advocacy threat, the familiarity or trust threat and the intimidation threat. If offers guidance on a number of areas of risk, including undue dependence on a client, actual or threatened litigation, mutual business interest, voting on audit appointments, participating in the affairs of a client, and beneficial interests in trusts.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Communication with Directors
Article Abstract:
The proposed UK statement of auditing standards on communication with directors is presented by the Auditing Practices Board.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2000
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Russian and Ukranian satellites to observe the oceans. North Korea's first satellite: fact and fiction. Russian proposals for launching satellites from the oceans
- Abstracts: Waiting for the great leap forward. Selective investment. RJB awaits government mining subsidy decision
- Abstracts: Taylor-made interest rate relief. The true interest rate question. Wages threaten interest rates
- Abstracts: Synthetic muscle promoters activities exceeding naturally occurring regulatory sequences. CREating breakthroughs
- Abstracts: Outwater Plastics. Gore-Tex footwear tank display introduced