Mechanisms for promoting auditor independence Essay: Mechanisms for promoting auditor independence There are two hypotheses derived by researcher in investigating mechanisms for promoting auditor independence can be implemented regardless of auditor tenure or rotation. First hypothesis was auditors with a stronger versus weaker client identity will agree more with the client preference, but only when professional identity is not heightened versus heighted.
Auditing The Auditor by James K. Loebbecke tells a story about the life and career of an auditor named Jack Butler. Loebbecke designed this story about Jack as a teaching tool to give students an understanding about the life of an auditor.
Jack is excited for the promotion, but is also nervous about the extra responsibility partners have and the stress it can bring on family life. He is also upset because his friend Don was considered for the promotion too, but was turned down. There are financial rewards and prestige, but also potential strain on friendships and family.
For the rest of the book, the author unfolds the events that take Jack closer to his partnership with The Firm. After Jacks promotion, the story goes back in time and shows all the events that led to the promotion. At that time Jack takes an interest in accounting and Wally takes Jack underneath his wing and gives Jack advice in planning a career in accounting.
Wally gives Jack great advice on the differences between MBA versus Essay on auditor and the differences between Essay on auditor types of accounting careers as Jack prepares for graduate school.
There he participates in Firm night where he meets several potential employers and sets up interviews with several firms. Jack interviews with Barnes and after some consideration between different firms he decides to work for Barnes.
In these chapters, the author shows how it is beneficial for a student to build relationships with faculty who can help guide them as they prepare for a career. Also, he shows the importance of attending firm night to begin networking with potential employers to increase chances of employment.
Jack attends a training school in Michigan with other new recruits to learn auditing procedures. Once he is finished with the training school, Jack is assigned to his first auditing job with a cement company, Rineholt. At Rineholt, Jack learns a lot, but is overwhelmed.
He discovers the petty cash custodian, who is a single mother, has been borrowing money from the fund to help pay her bills. Also at Rineholt, Jack gets his first real test of professional skepticism. He is observing cement inventory stored in silos with an employee named Walt.
Jack gives a measurement to Walt in order to calculate the volume of cement in the silos. After the measurement, Jack notices that Walt writes down a different number.
Jack finds out that Walt was changing the measurements. The author uses these scenarios to demonstrate some of the difficult aspects of the auditing professional. Auditors must be steadfast in their duty to the client. They cannot be afraid to be skeptical of the practices of their client or be afraid to deliver bad news if necessary.
The author puts Jack into some situations to show examples of how auditors may encounter difficult situations with clients and personnel that will require much consideration.
The first example of a difficult situation for Jack is when he works underneath Stan Wright on the Ardmore audit. Stan had a reputation for demanding a lot from his subordinates and being unreasonable regarding working conditions.
Stan was working Jack and several other auditors very hard to the brink of exhaustion.
In the end, the partner in charge sides with Jack decision, he then gives Jack a favorable review, and fires Stan for his abusive managing style.
Another example of a difficult situation for Jack is when he seniors a construction audit under the tax partner, Roy Shantz. Shantz tells Jack that he will have a meeting with the owner, but Jack is not allowed to attend.
After the meeting, Shantz tells Jack to use his numbers which show a profit and not a loss. Jack has a bad feeling about this, but reluctantly does what he is told because a partner told him to do it.
Eventually, the company is sold and goes under.
The Texas company that made the purchase brought a suit against The Firm because of the bad numbers from the audit, but it was settled. This could have been a bad situation for Jack if the suit had not been settled. Jack learned from his mistake for not sticking to his decision and for what was right.
Another common situation where experienced auditors can find themselves is when they are approached by an outside company trying to recruit them. Jack finds himself in this situation after working with The Firm for a few years. The CFO of the cement division of Rineholt offers Jack a position that will give him a higher salary and more benefits.
The Auditor by James K. Loebbecke tells a story about the life and career of an auditor named Jack Butler. The book shows Jack’s career from his education all the way to his promotion to partner. Loebbecke designed this story about Jack as a teaching tool to . Audit, Financial audit, Auditor's report, Auditing - An Evaluation Of An Audit. My Account. An Evaluation Of An Audit Essay. An Evaluation Of An Audit Essay. Length: words ( double-spaced Click the button above to view the complete essay, speech, term paper, or research paper. Hiyab corto analysis essay, positive and negative effects of social media essay law dissertation war crimes in vietnam short essay on punctuality is the key essay 10 federalist paper government response to hurricane katrina essay new orleans discuss the history of caribbean literature essayMacbeth character essay plan corporate social.
Jacks confides with Bear to try to figure out what is best for Jack. Bear asks Jack several critical questions that cause Jack to think hard about this decision. In the end, Jack decides to stay with The Firm because he feels public accounting is more fulfilling to him than an industry job.Auditor Essay INTRODUCTION Generally, the role of an auditor as an independent person who is appointed to investigate the organization, its records, and the financial statements prepared from them, and thus form an opinion on the accuracy and correctness of the statements (Millichamp, ) is understood by everyone.
Auditing Essay; Auditing Essay. Financial Systems and Auditing. Words | 7 Pages. Legal duties and status of auditors 1. A company’s auditor shall I preparing their report, carry out an investigation: whether proper accounting records have been kept by the company and proper returns adequate for their audit have been received from.
Essay on Reasons for Limiting Auditors Liability. limiting auditors liability is to decrease the risk of audit firm becoming bankrupt which will cause a general market disruption with potentially "adverse consequences for corporate governance in .
Audit, Financial audit, Auditor's report, Auditing - An Evaluation Of An Audit. My Account. An Evaluation Of An Audit Essay. An Evaluation Of An Audit Essay. Length: words ( double-spaced Click the button above to view the complete essay, speech, term paper, or research paper.
An auditor is a person who plans and addresses financial related audits. An audit is an examination of financial accounts to check for accuracy/5(4).
Essay on The Auditor Book Summary Words May 12th, 14 Pages The Auditor, an instructional novella written by James K. Loebbecke, tells the story of Jack Butler, a man from the San Francisco Bay area, who goes to college, majors in accounting, and goes to .