Introducing...the power quintuplets: client power and auditor independence

Article Abstract:

The independence of auditors is essential to the auditing process. Firms need to evaluate the possibility for impairment of independence as a necessary precaution in any relationship with a client. In the selection of a client or continuance of a relationship, firms traditionally must evaluate whether the client and firm have certain financial relationships and whether the auditor is part of management or under management control. Client power, the ability or capacity to influence an auditor, can impair auditor independence. The types of power include: authority, expertise, control of rewards, coercive, and personal. Firms must make a power profile of potential clients on which to evaluate whether they should accept an assignment. The power profile should: consider the client in terms of the five power sources; assess the probability of a client exercising power; and assess how the potential display of power would influence auditor independence.

Accounting

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Women at the partner level: what does the future hold?

Article Abstract:

Lack of objective data makes the progress of women in accounting difficult to track. Estimates from Certified Public Accounting registries of various states reveal that since 1970 there has been a dramatic increase of women in the accounting profession, and that about 16% of currently licensed certified public accountants (CPAs) are women. It takes about 10 to 12 years for accountants to gain sufficient experience and move through the ranks to partner or principal level; 1982 and 1986 surveys reveal percentages of women partners and principals that are consistent with percentages of newly licensed women CPAs from 10 to 12 years previously. Women who were certified between 1975 and 1979 represent about 3.5% of all CPAs, and so it is anticipated that about 3.5% of all partners or principals will soon be women. The American Institute of Certified Public Accountants has been asked to devote more resources to measuring the progress of female CPAs.

Social aspects, Analysis, Management, Businesswomen, American Institute of Certified Public Accountants, Women accountants, Women consultants

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An investigation into the effect of 'going concern' qualifications on the stock market

Article Abstract:

Because the auditor's report may result in the downfall of a company, it is not possible to examine the quality of the auditor's ability to project failure as compared to the investor's ability to forecast failure. However, the position of forecaster is forced upon the auditor. Also, the auditor can call upon certain quantitative and qualitative data that is not yet available from the financial statements.

Planning, Accounting and auditing, Business enterprises, Valuation, Going concern (Accounting), Going concern

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