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Regulatory and Compliance
Auditors, consultants and security professional owe to their clients stakeholders a duty of care in the performance of their duties. The duty of care requires these professionals to observe prudence in all circumstances regarding their actions and evaluations (Boynton & Johnson, 2006).
Contribution of the PCAOB towards Independence of Auditors of Public Companies
It is sometimes ignored the contributions made by PCAOB towards improving corporate governance in public companies by generating better focus upon accounting and audit practices. A series of failures in the various functions of a public corporation to protect the investing interest of public corporations contributed the creation and enactment of Sarbanes-Oxley Act (SOX). Despite there being criticisms against the effects of PCAOB the board has contributed towards a higher degree of professionalism on public corporation auditors. An Important contribution of the board towards this independence is through the assertion that the audit companies should be subject to the securities law and concerned matters. Thus, the audit company is not likely to conspire with the corporation's directors to misrepresent facts in accounting and auditing reports. This requirement protects the investors' interest by ensuring resultant audit reports are accurate, informative and independent. Should the...
The independence in action prompts audit company to undertake their duties with due diligence and fully accountable to the regulatory board and the legal repercussions.
Formulation ad composition of the PCAOB board members
The PCAOB is a nonprofit corporation that serves to oversee the public investors interests through the formulation of accounting and auditing standards (Kimmel, Weygrandt, & Kieso, 2012). The corporation is charged with the obligation of registering public accounting audit firms, an inspection of public accounting and audit firms, setting standards for accounting and audit, and investigation and enforcement (Farrell, 2006). Given the duties assigned to the board and the need to ensure public investor confidence, it is necessary that the board's composition is of persons who have an understanding of the regulations in auditing and accounting standards. The board members ought to also comprehend what they need to deliver to ensure public confidence. In this perspective, it is only reasonable that the board members be drawn from firms that are credited for the use of the audited financial statement.
With the board composition comprising of a member from investment companies…
References
Boynton, W. C., & Johnson, R. N. (2006). Modern Auditing: Assurance services and the integrity of financial reporting (8th ed.). Hoboken: NJ: Wiley.
Donna, M. N. (2010). The PCAOB a "Heavily Controlled Component" of the SEC?: An Essential Question in the Constitutional Controversy Faculty Publications. Paper 35 Indiana University Maurer School of Law Indiana.
Farrell, G. (2006). Corporate Crooks: How Rogue Executives Ripped Off America. Amherst, NY:: Prometheus Books.
Greiling, D. (2006). Performance measurement: a remedy for increasing the efficiency of public services? International Journal of Productivity and Performance Management, 55(6), 448-465.
Accounting in Australia: Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed to become an important element of the business fabric and economic development of a country and its organizations and institutions. This element has developed as a profession and business practice that is closely linked with the considerable economic development in Australia for
This process has been ongoing since then. One of the major differences between the two standards is going to be that whereas GAAP emphasizes rules, the IFRS is a principle-based approach. Implementing a principles-based approach has significant implications for American tax practice. Many of the specific differences between the two systems will have a direct impact on tax practice. In IFRS, LIFO is prohibited and inventory write-downs may be reversed
Through the establishment of a clear structure, recommendation of the internal audit team will be implemented and hence the company will realize improved performance. To ensure that the internal auditing standards and other auditing standards are upheld, the company must come up with a way of continuously ensuring their internal audit staff attend conferences where training on standards are done. Implementation is only possible if the employees understand what is
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Lessons from Ethical Violations in Public AccountingPublic accounting is a field faced with ethical issues similar to any area of practice. Unethical practices in accounting are often motivated by management greed, incentives, bonus, management pressure, and more. These practices only lead to short-term gains (Finn, Chonko & Hunt, 1988). The long-term impacts are usually negative consequences. Ethical behavior and practices are critical aspects of good accounting. Accounting regulations and rules
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