The oversight of the audit profession

Supervising a supervisor

Business & Finance
Cover of the book The oversight of the audit profession by Ecaterina Volosin, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Ecaterina Volosin ISBN: 9783640192038
Publisher: GRIN Publishing Publication: October 20, 2008
Imprint: GRIN Publishing Language: English
Author: Ecaterina Volosin
ISBN: 9783640192038
Publisher: GRIN Publishing
Publication: October 20, 2008
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,0, University of Glamorgan (Business School), course: International Accounting & Audit, 23 entries in the bibliography, language: English, abstract: This paper provides an overview of the current regulatory frameworks for financial reporting and auditing in the UK, US and Germany. During the last years these frameworks were noticeably changed. These changes arose especially from political interest in accounting regulation following the Enron collapse. The main change in the US was the introduction of the Sarbanes-Oxley Act containing strict regulations for auditors, including their responsibilities and services. It also contains a list of prohibited audit activities, the so-called 'non-audit' services. The main feature of the Act was the creation of an oversight board to regulate and control auditors of public companies. Thus the 'Public Company Accounting Oversight Board' was established. The PCAOB is a private-sector non-profit overseer, supervised by the US Securities Exchange Commission (SEC) which regulates basically anything related to the securities market. Following the collapse of Enron and the turbulence in the UK markets that followed, a review of financial regulation in the UK was ordered, covering for example auditor independence, corporate governance, financial reporting and auditing standards and accountability of audit firms. In order to restore credibility in UK accounting the Financial Reporting Council (FRC), an independent private sector body funded by the accountancy profession, was set up. The FRC has several subsidiary bodies, including the Professional Oversight Board (POB) providing independent oversight of the regulation of the auditing profession. The German Auditor Oversight Commission (AOC) was established according to the Auditor Oversight Law. It is in charge of the public oversight of all activities of the German Chamber of Public Accountants (WPK) with respect to statutory auditors. The Commission has the ultimate responsibility in the areas of licensing, registration, disciplinary investigations and quality assurance, all with respect to members of WPK entitled to provide statutory audit services (WPK, n.d.). It is argued that these new regulations impose another layer of bureaucracy with significant costs for very little apparent gain. But ethical issues surrounding the public's perception of auditor performance need to be addressed, not just for the sake of the profession, but for the efficiency and effectiveness of capital markets in general (Malthus and Scoble, 2005).

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,0, University of Glamorgan (Business School), course: International Accounting & Audit, 23 entries in the bibliography, language: English, abstract: This paper provides an overview of the current regulatory frameworks for financial reporting and auditing in the UK, US and Germany. During the last years these frameworks were noticeably changed. These changes arose especially from political interest in accounting regulation following the Enron collapse. The main change in the US was the introduction of the Sarbanes-Oxley Act containing strict regulations for auditors, including their responsibilities and services. It also contains a list of prohibited audit activities, the so-called 'non-audit' services. The main feature of the Act was the creation of an oversight board to regulate and control auditors of public companies. Thus the 'Public Company Accounting Oversight Board' was established. The PCAOB is a private-sector non-profit overseer, supervised by the US Securities Exchange Commission (SEC) which regulates basically anything related to the securities market. Following the collapse of Enron and the turbulence in the UK markets that followed, a review of financial regulation in the UK was ordered, covering for example auditor independence, corporate governance, financial reporting and auditing standards and accountability of audit firms. In order to restore credibility in UK accounting the Financial Reporting Council (FRC), an independent private sector body funded by the accountancy profession, was set up. The FRC has several subsidiary bodies, including the Professional Oversight Board (POB) providing independent oversight of the regulation of the auditing profession. The German Auditor Oversight Commission (AOC) was established according to the Auditor Oversight Law. It is in charge of the public oversight of all activities of the German Chamber of Public Accountants (WPK) with respect to statutory auditors. The Commission has the ultimate responsibility in the areas of licensing, registration, disciplinary investigations and quality assurance, all with respect to members of WPK entitled to provide statutory audit services (WPK, n.d.). It is argued that these new regulations impose another layer of bureaucracy with significant costs for very little apparent gain. But ethical issues surrounding the public's perception of auditor performance need to be addressed, not just for the sake of the profession, but for the efficiency and effectiveness of capital markets in general (Malthus and Scoble, 2005).

More books from GRIN Publishing

Cover of the book America's National Identity by Ecaterina Volosin
Cover of the book Linguistic and discourse analysis of a dinner-conversation by Ecaterina Volosin
Cover of the book Doing Business in the Global Environment: Corporate Social Responsibility as an Organization's Core Business Strategy? by Ecaterina Volosin
Cover of the book Is the EU Fiscal Compact enough to avoid another Euro Crisis? by Ecaterina Volosin
Cover of the book Attitudes towards the child in children's literature: A Comparison of the Victorian Age and the Inter-War Period by Ecaterina Volosin
Cover of the book Das anthropologische Frauenbild in Kleists Erzählung 'Das Erdbeben in Chili' by Ecaterina Volosin
Cover of the book Alexander Pope as satirist and commentator on his society by Ecaterina Volosin
Cover of the book Coursework Consumer Law by Ecaterina Volosin
Cover of the book Heideggers fundamental-ontologische Sprachbestimmung im Verhältnis zur klassischen Bezeichnungsfunktion der Sprache by Ecaterina Volosin
Cover of the book Central concepts of aesthetics: a proposal for their application by Ecaterina Volosin
Cover of the book Comparison between 'When Hitler Stole Pink Rabbit' and 'Life Is Beautiful' by Ecaterina Volosin
Cover of the book Stephen Spender's 'The Temple' as an autobiographical novel by Ecaterina Volosin
Cover of the book Ein Vergleich der beiden Hauptcharaktere aus 'Markens Grøde' und 'Sein eigener Herr' in Bezug auf ihre Einstellung zur Familie by Ecaterina Volosin
Cover of the book About Plato's ideas regarding political organisation by Ecaterina Volosin
Cover of the book Microfinance Institutions in Ghana: Analysis of the Kraban Support Foundation (KSF) by Ecaterina Volosin
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy