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Several federal laws require external audits to protect the

Several federal laws require external audits to protect the public. Should federal laws also require internal audits within a public corporation? Please provide an example.

How could federal laws be improved to regulate the quality and effectiveness of financial audits?

Professional auditing standards provide for an unqualified audit report with three standard paragraphs. Please describe those paragraphs. Which one is the most important and why?

In terms of professional standards, when is a disclaimer more appropriate than an audit opinion? Please explain the basis for your example.

Please define the terms in fact and appearance. What are the ethical implications and rationale for these auditing procedures?

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Several federal laws require external audits to protect the public. Should federal laws also require internal audits within a public corporation? Please provide an example.

Federal laws should definitely also require internal audits within a public corporation, and they should be structured similarly to several of the SOX provisions. The main problem with requiring internal audits from the start is that there is always the chance of collusion between the internal auditor and management, because they are from within the same company. However, assuming that all are being honest within their responsibilities, and that all employees are acting ethically, internal audits are still a good measure, and should be required by federal law.

The main factor is that a required internal audit would enhance the company's internal control ...

Solution Summary

Several federal laws require external audits to protect the public. Should federal laws also require internal audits within a public corporation? Please provide an example.

How could federal laws be improved to regulate the quality and effectiveness of financial audits?

Professional auditing standards provide for an unqualified audit report with three standard paragraphs. Please describe those paragraphs. Which one is the most important and why?

In terms of professional standards, when is a disclaimer more appropriate than an audit opinion? Please explain the basis for your example.

Please define the terms in fact and appearance. What are the ethical implications and rationale for these auditing procedures?

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