Tuesday, April 23, 2019

Rotation of Auditors Improving Quality of Audits Essay

Rotation of Auditors Improving Quality of Audits - screen ExampleBeing faced by many of the threats the m geniustary statements atomic number 18 deemed to provide true and unobjectionable view and audit of the monetary statements depicts that whether the information provided in the financial statements atomic number 18 up to the standards upon which the financial statements are to be presented and issued. The theatrical role of the audit is pivotal for the integrity and reliability of the information provided and disclosed in the financial statements. With the continuous increase upon the integrity of the financial statements there are efforts made and put in to suffice in order to provide high quality audit. Many of the legislations and regulations are formed to excel the quality of the audit so that the quality audit can enhance the integrity of the financial statements. There are many factors, which contributed towards the quality of the audit and their relation with the quality of financial statements, one of which is the rotation of the auditors. The independence of the auditors is one of the major factor which reflects the quality of audit. The impact of the rotation of auditors upon the quality of audit ensuring auditor independence and how the factors alter the auditors independence are tackled with rotation of audit is discussed. Importance of Audit Quality The quality of the audit is crucial for every user as the financial statements fulfilling the information requirement, which is different in every case. The importance of the transparentness of information is critical as the users are dependent upon the provided information and that information is needed to be whole free of bias and should present the true and fair view of the troupe (Zabihollah, et al., 2003). The quality of the audit of the financial statements is decisive for every user as it is the quality of audit that depicts the dependency and reliability of the information provid ed in the financial statement. Regulations and Principals The importance of the audit is of utmost important as it elaborates the transparency and quality of the information that the company provides in its financial and non-financial statements (Anna & James, 2009). The information that is scrutinized in the audit process depicts the quality of the audit. The quality of audit is careful upon various techniques where the relation of the auditor is one of the major factors that result in the rotation of the auditors. The ethical synthesis of the audit and the principals provided by the international auditing and assurance standard board are issued in order to run for through the quality of audit. There are various legislations imposed in various countries where the rotation of the auditors is solidifying as compulsory for the company. The importance of the audit is realized and various regulations were made and implemented. The Public Company explanation Oversight Board has impl emented laws that are mandatory to be followed where the rotation of the auditors are set to be followed by the companies. Corporate establishment failure caused many of the scandals that gave rise to many of the regulations (Francine, 2011). In the corporate governance the best practice principals denotes the quality of audit to be enhanced when the rotation of the auditor is made afterwards every three years. The corporate governance best practice is dedicated towards the operations of the company, which depicts the

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