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Auditing
The main problem related to many companies leaving Andersen, despite the fact that its Houston office had no part in servicing the engagements, is perception. Primarily, Andersen had a significant business relationship with Enron, which was its largest client. With Enron's demise, this relationship was seen as universally damaging, regardless of the areas of the company that had nothing to do with the scandal.
Secondly, Andersen's reputation even before its relationship with Enron was not crystal clear to begin with. Indeed, its reputation had already been damaged by several investigation into its other accounting and auditing practices. The Enron scandal appears to just have been the final nail into the coffin. It appears then that, regardless of any true wrongdoing, its mere association with the scandal brought about irreversible damage.
If I had an accounting career, my reputation could be damaged by turning a blind eye when I see discrepancies in the accounting practices of my clients. Even if I knew nothing about these concealments, any investigations into their accounts could damage my career. I think this would be the case regardless of whether the investigations reveal wrongdoing or not. When my integrity is questions, it could take years to build up a sound reputation again, and I might lose a significant amount of business in this way.
In order to preserve my career, I will need to be aware of all the rules and regulations relating to my business and its practice. Before entering into a relationship with another company, I would first conduct in-depth investigations into the company's general practices, as well as its accounts and the specific areas where I will be involved. Once I have taken on a client, I would also do my utmost to ensure that the company conducts its business with integrity. If I find discrepancies, I would encourage the company to correct these, and terminate my relationship with them if they do not, even if they offer me a significant revenue if I do not.
In other words, if the financial difficulties they encounter are the fault of the auditing firm, they will have protection from any legal ramifications they may have encountered from faulty accounting or auditing measures. Preventive measures are also part of the internal controls of the auditing firm itself, so that each person who works with that firm knows the measures that are to be taken to make sure auditing
Auditing of Enron Corporation Responsible Accounting and Enron Questions There were numerous parties associated with Enron who were responsible for creating the "crisis of confidence" in the accounting profession. At the top of the list would be Enron's executives themselves: Jeffery Skilling, Kenneth Lay and Andrew Fastow all broke numerous rules, regulations and laws that govern accounting principles in order to increase their revenue on the income statements and in turn raise
People in the company were not attentive to the amount of loans that were delinquent, who should be allowed to borrow, and how many people were making deposits. Banks like these do not realize the amount of loss they can create without properly regulating anything. Regulation and constant updates on company or, in this case, bank spending is crucial in understanding how much the financial institution has in reserve. What
Auditing Discussion a) The public accounting profession has taken a number of steps to minimize potential bias towards important users. The profession has specific standards for auditing, a separation between auditing and consulting roles, and other mechanisms. The audit function itself, and the use of generally accepted accounting principles, is a means of providing neutrality in financial reporting. Standardized reporting thus delivers statements and reporting that are the same across industries,
Legislation and standards affecting IT auditing The Audit Quality Forum was established with the primary purpose of reinforcing confidence in financial reporting. Statutory auditing promotes confidence because auditors are likely to give external and objective opinions on the presentation and preparation of financial statements. Auditors are required to be independent in opinions expressed, and their work is greatly based on real world. This is challenging in particular national settings. Recently, standard
Best Practice/Making Improvements A clinical audit is an integral part of the healthcare system. Ferris (2002) defined Clinical Audit as the comparison of the actual clinical practice against the agreed and documented evidence-based standards in an effort of improving the level of patient care as cited in ACGW and Daly (2008,p.4). Importance of Clinical Audit There are several reasons as to why a clinical audit is crucial in clinical practice. The main