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Auditing Essay! Help please :D

The title of this essay is: RELEVANCE OF AUDITS IN TODAY’S BUSINESS ENVIRONMENT; MANAGING THE EXPECTATION GAP

I am stuck on this phrase: 'fit for purpose' in regards to financial statements and auditor reports, as this is the source of the expectation gap.

Any takers?!?! lol

Any references to what 'fit for purpose' actually means in an auditing context and can anyone post some sources??

Thanks in advance

Reply 1

A.A.T.

The audit expectations gap is of serious concern to the UK accounting profession with the Department of Trade and Industry proposing a new framework for independent regulation of the accounting profession. However the new Accounting Foundation has had its role placed under review following the Enron collapse and introduction of the Sarbanes-Oxley Act 2002.3 This resulted in responsibility for independent regulation of the accounting profession being transferred to the reconstituted Financial Reporting Council. High profile failure of financial services firms, commencing with the secondary banking crisis in the 1970s, followed by collapses of banks such as Johnson Matthey Bankers ( JMB), Bank of Credit and Commerce International (BCCI) and Barings, building societies such as Grays and insurers such as the recent problems at Equitable Life and Independent Insurance have given rise to further debate on the audit expectations gap. The debate surrounding the “expectations gap” often revolves around whether such a gap can be eliminated.

Is this for university of professional accounting course such as Acca / CIMA?

Up-to-date journals are very much the expected source of research with many universities having excellent access to journal sites such as Emerald. A few links to some are below. Many more resources / journals can be obtained by using the references in the journals below.

It is a very important issue now along side regulation no matter where you are studying.

References / documents to consider:

http://www.ijar.lit.az/pdf/1/2009%281-21%29.pdf

http://www.acca.co.uk/pubs/general/activities/library/audit/audit_pubs/pol-af-valpol.pdf

journal.ccsenet.org/index.php/ijbm/article/download/1043/1012

http://mpra.ub.uni-muenchen.de/232/1/MPRA_paper_232.pdf

Hope this is a useful start.

(edited 12 years ago)

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