Small company audits: satisfying the regulators
Article Abstract:
Accounting regulations of European Community countries have criteria based on size and public listing for determining whether a company should be subject to an external audit. In the UK, auditing statutes require that all companies, regardless of size, are subject to an external audit. The problems auditors face when auditing a small business are rooted in the size and nature of small businesses. Control features typically lack classic segregation. Small firms typically are dominated by the proprietor, who has the power to by-pass controls that have been implemented by subordinate managers. Auditors auditing small companies must rely on the balance sheet and use an analytical framework when assessing the accounts' credibility.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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Audit risk management for smaller firms
Article Abstract:
The high incidence of liability claims against accountants in the low-risk areas of accounts preparation and basic audit work indicates the need for a more systematic approach to audits. A rational and structured approach to routine assignments incorporating thorough supervision, review, and planning, would reduce the risk of liability through oversights or neglect. A structured program for the oversight of auditing assignments should include: a monetary unit sampling for verification; the delineation of categories of risk; and the assessment of inherent risk. Documentary evidence of audit conclusions that are linked to the preceding procedures will provide a defense against unwarranted claims.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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Justice US-style: Can we learn from it?
Article Abstract:
The financial scams like Enron expose the need for regulations to restrict further happenings but the best way to deal with corruption is punishing the accused in a way that provide both justice as well as creation of limits that would scare even the toughest of criminals and all associated professionals whose associations with them lends a veneer of credibility to their activities. The work by the team of US government officials who dealt with the Enron scandal is noteworthy and the fall from grace of the company would serve as the greatest deterrent to would-be fraudsters, and those tempted to assist them as advisors, consultants or auditors.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2006
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