Should public opinion affect auditing standards?

Article Abstract:

A survey conducted by Decimal Research Ltd of 540 Canadian citizens who have invested in publicly traded stocks or read financial statements has determined that some knowledge of financial statements and accounting procedures is not necessarily enough to enable the knowledgable individuals to answer questions about the public accounting profession in a well-informed manner. The survey also revealed that public opinion of Chartered Accountants in Canada is positive, although that opinion is based primarily on casual attitudes, not personal experience. Of the respondents, 50% did not believe auditors could maintain objectivity when performing services for clients other than auditing; 66% believed more flexibility would make audit reports more meaningful; and 91% thought auditors should be legally obligated to report serious matters to regulators if companies such as financial institutions do not.

Canada, Auditing, Surveys, Public opinion, Auditors, Decima Research Corp.

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Practice monitoring

Article Abstract:

A working committee of the American Institute of Certified Public Accountants (AICPA) and the SEC recently made proposals regarding quality control in public accounting practice. The Anderson Committee Report of the AICPA calls for increased practice monitoring, or peer review programs to be carried out uniformly by all firms that have AICPA members. The SEC would make peer reviews mandatory for all accountants who have publicly listed clients.

Standards, Quality management, Public finance, Accountants, Government accounting

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Accounting for pensions

Article Abstract:

Pensions represent a complex accounting issue; it is not possible to assess pensions in any other way. The conflict is one of presently accounting the cash outflow that is expected to occur during future years. There will be uncertain cash outflow amounts made to unknown numbers of people, over periods of time not determined. Also, proper rates for discounting future sums back to the present are reasonable estimates or can be poor guesses.

Methods, Pensions

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