" This project is considered to be the first major update to the Smith Guidance. It was felt that the update was required to shore up some of the deficiencies in the Smith Guidance that have emerged since it was published. There were characteristics of the market that it was felt needed to be addressed, in particular the oligopolistic nature, which exposed the market to considerable uncertainty in the event

However, there has also been hesitation within government to challenge auditors too aggressively. Because accounting scandals have the power to wipe out a major auditing firm, there is considerable sentiment that the existing industry structure needs to be protected, and that all four major firms should be kept from significant scrutiny, lest one of them collapse, ruining competition in the industry. Already the rapid acceleration of audit fees indicates oligopolistic

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

Audit Quality and Agency Cost Since the advent of industrialization, there has been the presence of a bond between the people who invest and the people who manage those investments, forming a vital relationship amongst the two groups. Although with the rise of such relationships, the soaring issues of trust and confidence have been a hindrance in economic growth. Viewing the high percentage of the capital of investors or shareholders in

Auditing function has undergone several transformations from the periods when it was simply a function of giving opinion but also to an error where auditors are looked upon to offer advisory roles. The auditors should therefore advice the government on the impacts of their operations on the public and on other improvements that can be made to maximize on the service delivery. In pursuing their taxation policies and fiscal

Bullseye CompanyAn audit is a report given from an analysis of business operations. Business operations are analyzed and set standards set either by regulatory bodies, government, or the audited business itself. The completed product is a final report describing aptitude against the set standards. There are two types of audits, namely internal and external audits. Internal audits are voluntary and conducted within an organization, while external audits are audit reports