Auditing Essay Example | Topics and Well Written Essays - 1500 words

Auditing - Essay ExampleThe audited accountor is responsible for lay in and evaluating the evidence in methodicalness to make an opinion on the financial part of a company. In the contemporary business world, various changes stool been experienced as auditors embark on addressing the challenges that face them as professionals. Quality auditing by independent auditors is a vital aspect in that it ensures that crownwork markets are in effect working while at the same time usual and investors interests are protected. This paper seeks to project the changes in the auditing environment and the resulting challenges. Additionally, the paper will discuss key littleons that auditors can draw in order to capitalize on emerging opportunities. During the annual conference for American Accounting Association (AAA), the issue of auditing scruple was noted as one of the key challenges that are faced in the field of auditing. According to the PCAOB, all audit who is focused at coming up wi th a fair view of the clients financial position must emulate professional skepticism throughout their audit process. This implies that firstly, the auditor should portray a superior general duty of care during their duties. Secondly, professional skepticism entails having a questioning mind on the appropriateness of the audit evidence (James, 2013). Thirdly, it comprises of there key elements that includes mindset, actions and attributes. The three aspects must be emulated together in order to produce up with a quality audit. One of the major issues that results to change in the audit are the unbelieving judgments arrived at during the audit planning. This can be due to the variation in the level of skills as closely as the expertise of the individuals involved in the process. Additionally, auditing may be affected by the judgments of other auditors who have undertaken an audit process of a particular company. Being a complex issue that is experienced by auditors during their d uties, skepticism entails various fields such as theory, auditing literature, corporate governance, business models and ethics among others. As a result of complexity of the auditing process in some companies, there has been a continued increase in the audit deficiency during the inspection of the financial information and records (Charan, 2005). According to McKenna (2011), majority of these deficiencies are caused by wish of adequate professional skepticism. Auditing standard calls for emulation of professional skepticism if an audit sees the possibility of a large misstatement that may be caused by a fraud activity. During their duties, auditors should exercise professional skepticism especially during the crowd of information and evaluating the evidence. This implies that even if the auditor beliefs that the management team is honest, the auditor should not be satisfied with less persuading information. Another major challenge facing the auditing profession is hindrance to ma intain its significance in the capital markets. It is vital to note that auditing plays an essential role of advancing capital formation. Similarly, it is subject to changes in demand. The profession faces momentous choices of how and when to meet these changes. Though just like other professions, auditing must be in line with the public needs and regulate capital markets it is faced by various factors that limit it. One of these factors is the statutory franchise. In order to