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Licensed CPA and Auditing Standards

Explain how a licensed CPA (as an outside auditor) could be of value to your company.
Critique current auditing standards.
Analyze the importance of ethics in the audit process.
Assess the role of auditing in reducing information risk for decision makers
Explain how independent audits could help the decision makers at your company.

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Explain how a licensed CPA (as an outside auditor) could be of value to your company.
1. A licensed CPA as an outside auditor examines and finds out the weaknesses in the control system; These can be strengthened;
2. A licensed CPA as an outside auditor certifies your accounts and his certification is accepted by the world at large.
3. A licensed CPA as an outside auditor follows the correct and standard auditing principles and creates confidence in the financial statements.
4. A licensed CPA as an outside auditor is unbiased and does an objective and knowledgeable examination and evaluation of the books of accounts.
5. A licensed CPA as an outside auditor often discovers unsafe activities and reports them to the management.
Critique current auditing standards.
1. The auditing standards are based on ad hoc changes (improvements) rather than systematic improvements:
2. The auditing standards are related to quality of auditing of the financial statements, books of accounts and the financial conditions of the companies, they however do not touch other aspects of the company that are equally important for example quality audit or even marketing audit. Moreover in several sectors environmental auditing is strongly required.
3. The current auditing standards emphasize on ...

Solution Summary

Audits is discussed in great detail in this solution.

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