[Current Issues in Auditing]

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Acknowledgement

I would first like to express my gratitude for my research supervisor, colleagues, family and peers whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

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Abstract

In this study the current issues of auditing has been discussed. Auditing can be defined as the experts of the financial reporting scrutinize financial reports. Their task is the verification of the accuracy of financial statements i.e. income statement, cash flow etc. The auditors have to interpret the accounting standards, the better they interpret these standards the better the financial statements results will be. There are many issues pertinent to auditing procedures and different measures are being taken to solve those issues. In this research study those issues and their solutions are being discussed.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Problem Statement2

Purpose of the Study2

Research objectives2

Significance of the Study3

Ethical Consideration3

CHAPTER 2: LITERATURE REVIEW5

Auditing the Financial Reports5

Purpose of Effective Auditing6

Problems in Implementing the Standards7

Objectives of Auditing8

Types of Audit9

Distinguishing Accounting Standards from Auditing Standards10

Training and Social Capacity11

Accuracy and Fitness Professional12

Independence of Mind12

Requirements for Field Work12

Business Planning and address12

Study and Evaluation of Internal Control12

Evidence, Sufficiency and Competition12

Quality Auditing13

Analysis on Current Problems of the Audit13

Risk assessment14

Response to Risk15

Current Financial turmoil and Auditing16

Accounting Standards and Principles16

Role of IAB & Auditing Need17

Forms of IFRS19

Audit Requirements for UK Companies19

Changes in the Companies Act and to Audit Requirements20

Audit Exemptions20

Audit Report20

Appointment of an Auditor21

REFERENCES22

CHAPTER 1: INTRODUCTION

Background

Auditing is defined as a systematic procedure of attaining and assessing proofs or evidence. These evidences should be pertinent to economic actions and events to determine the extent of correspondence between those assertions and established criteria (Daigle 2004, 36). After communicates the final results with the users, those who are interested in knowing the financial position of the firms (Daigle 2003, 3). Auditing is one of most valuable aspects of financial institutions. Today, the auditing firms in Europe and Britain are in a state of shock by the recent media reports regarding the prevailing irregularities in the financial sector. The company's crisis can be explained by the influence of external factors (Baldwin 1993, 16). These factors are the determining cause of company's success or failure. These crises can also be solved by taking into account the internal factors (Bovee 2005, 19). This approach can help in the development of more accurate diagnoses for the company which is in the state of crisis. A global treatment of the problems of accounting involves the study of the relationship between the company, and its environment from a spatial perspective, the question that arises is how to characterize, and describe the space within which the company exists (Brancheau 2006, 42).

The prevalent auditing crisis is an off-shoot of the Enron Scandal. The famous Enron Scandal triggered a need for ...