Roles of the auditor, Auditing

What is the role of the auditor, and what are the key duties the auditor must carry out?

Role of the Auditor

In modern commercial environmental it is desirable that businesses which are operate as companies with limited liability (usually operated by hired management) should produce accounts which will indicate how successfully they are performing. But owners of business require something more than the accounts because the managers responsible for preparing their may, either unintentionally or by deliberate manipulations, produce accounts which are misleading. An independent and examination of the accounts is needed so that owners of the business can asses how well management have discharged their stewardship.

The role of the auditors today has parallels with earlier forms of auditing the need for independent auditor was apparent when business develop in which there was a division of interests between those who carried out the day today management of undertaking and those who provided necessary finance but did not participate in management. The auditor can be seen mediators between such parties who have potentially conflicting interest. The work of auditors today is regulated mainly from two sources

1- Stature  of which co ordinance is very important

2- Profession of pronouncements on Auditing

Profession of pronouncements includes the rules of professional conduct issued by professional ladies to which auditors belong.

Kingston Cotton Mills Co. Ltd. 

In this case auditors were not held liable for negligence. It was held that it is not the duty of auditors to take stock, if they accept certificate in the absence of any suspicion, he has carried out reasonable care and skill.

Capro Industries.

In capro case the court pronounced the judgment that the auditor is only liable to present, not prospective investor, but according to latest auditing standards auditor is also liable to third party.

Posted Date: 3/14/2013 2:35:22 AM | Location : United States







Related Discussions:- Roles of the auditor, Assignment Help, Ask Question on Roles of the auditor, Get Answer, Expert's Help, Roles of the auditor Discussions

Write discussion on Roles of the auditor
Your posts are moderated
Related Questions
Reference to an expert in auditor’s report When issuing an unmodified auditor’s report, the auditor must not refer to the work of the expert. This is because such a reference m

Meaning of the auditing definition a) Orderly and efficient manner: An organization which is run in an orderly and proficient manner is able to satisfy the requirements o

International, Assurance Auditing, Standards Board (IAASB) The prologue to the International Standards on Quality Control, Auditing, Assurance and Related Services is issued to

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

discuss the verification procedure of current assets and long term liabilties

Statistical techniques Factors to be taken into consideration before adopting statistical techniques: a) The number of clients to whom it is appropriate because set up costs a

The modern approach allows one audit of an auditable entity with one comprehensive report. One additional advantage is that this approach assists in staff development and retention

IFRS 5 Non-Current Assets IFRS 5 Non-Current Assets Held for Discontinued and Sale Operations The Discontinuing Operation is a component of an enterprise: (a)  Such the

the reliabity of audit evidence defers with source is that true

The Need for an Audit If you take an example of a modern large liability company, we can clearly distinguish between the providers of funds and those who control those funds. The