Abstracts » Business

Servant of three masters

Article Abstract:

Auditors are torn by conflicting loyalties to shareholders, regulators and management. Auditors are tasked to act as agents of shareholders, but they deal more with management on a regular basis than with the shareholders. Shareholders then lose power over their auditors and the duration of the auditors' services will then depend on management. Moreover, regulators of financial institutions expect auditors to inform them about matters that are of interest to the former. The problem is compounded by the lack of decisive criteria on which to base items that are to be included in the reports.

Analysis, Evaluation

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Expand or perish

Article Abstract:

Auditors must extend their assurance services from the traditional financial statements to decision-making information. An American Institute of Certified Public Accountants report considers any kind of data that tend to influence business decisions as decision-making information. The addition of credibility or assurances to such information is termed as information-based assurance services. Efficient delivery of this new kind of service demands new auditing methods and criteria for determining data reliability.

Accounting & Auditing Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Innovations, Reports, American Institute of Certified Public Accountants

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At home on the range

Article Abstract:

Auditors are tasked with the responsibility of dealing with imprecise accounting estimates. Management is primarily responsible with estimating account valuations but auditors are the ones accountable as to testing the reliability of the information used and assessing the assumptions applied to them. Auditors have to consider different approaches when establishing a zone of reasonableness in dealing with management estimates on financial statements.

Methods, Accounting and auditing, Financial statements

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