Is the Operation of Auditing Necessary Essay - 1829 Words

[IS THE OPERATION OF AUDITS NECESSARY?] [We need to understand that audit is about achieving customer satisfaction in order to gain repeat business and overall increase company revenue.] What is business ethics? The ethics of a particular business can be diverse. Business ethics is the behavior that a business devotes to in its daily dealings with the world. Auditing is the analysis and inspection of the financial accounts/records whether or not a company has a qualified accountant and procedures of a firm or organization. This is necessary to gain a fair information on the company’s financial statements. With its auditing, potential investors and creditors can look at the financial statements to decide whether to invest in a business†¦show more content†¦Managing for honor is far more than compliance, it also includes management self governance in which company’s employee ethics play a major role. The key aspect for employment is education, leadership, and accountability. These are the compliance strategies that are usually based upon externally established standards. In the corporate world, the key word â€Å"stakeholder† is considere d a questionable term. The word stakeholder is used to describe stockholder and investors who are involved in accusation made by the firm. Stakeholder theory has become well known theme in the business/ethics and society literature. This term has developed more meaning not just in the business world but also in political implication because of the Labor Party in Great Britain, who has adopted this theory. To many economists the word â€Å"stakeholder† is known as the internal code which is used by many companies managers to justify their breaching of fiduciary duty to the owners of the companies. It is believed that a big benefaction comes from well studied case, field research of the firms that would be willing to engage us to help understand how managers overcome the ethical issues in the business world. Such ‘ethical audits’ would not only help clarify current ethical issues in business but would engage us to better understand theShow MoreRelatedOperational A udit1064 Words   |  5 Pagesthe effectiveness and/or efficiency of operations. †¢ Examinations of all or part of an entity to determine the degree of its operational efficiency, effectiveness and economy. †¢ Also refers to the auditor’s study of business operations for the purpose of making recommendations about economic and efficient use of resource, effective achievement of business objectives and compliance with company policies. †¢ The term operational auditing is the most widely used today. †¢ Read MoreEssay on Internal Auditing and What It Entalis1137 Words   |  5 PagesTo answer this question we will have to first understand what is internal auditing and what does it entail and then answer why internal auditing is â€Å"eyes and ears† of management. Internal Auditing as defined in the IPPF Framework is â€Å"an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness ofRead MoreMemo On Program Evaluation Of Internal Auditing System1060 Words   |  5 PagesPratusha kudumula DATE: feb3, 2016. SUBJECT: Memo on program evaluation of internal auditing system in Pharmaceutical industry. OBJECTIVES: The main objectives of this memo is to discuss the purpose, determine the conformity or non-conformity of the quality system in meeting the specified requirements to clients, and how the internal auditing system in Pharmaceutical industry works. Conducting internal auditing of operations are key elements of a good quality system. Conducting audits is a means of evaluatingRead MoreCase Study : Insurance Groups Current Governance Protocols And Practices1550 Words   |  7 Pageskey principals, which govern the routine operations of an enterprise. It is essential for corporate organizations to have clear guidelines that determine the processes and operations of a business venture not only ensure compliance, but to avoid larger issues of corporate fraud and unethical business practices. In this report, we will review QBE Insurance Group’s current governance protocols and practices and provide recommendations where deemed necessary by the author. History of QBE QBE InsuranceRead MoreInternal Controls And Internal Control System1580 Words   |  7 Pagespractices, (ACCA, 2013). The failure of an improper application is not an indication that internal control has not been implemented; in the majority of cases IC has been implemented. Instead, the numerous cases of poor CG and IC portray that auditing practices have been poorly applied or have been overlooked by some of the managers. To rectify this, the following section on ‘the importance of IC and audit will be looked at, as a process to help improve charities’ IC systems through the effectiveRead MoreMadoff Securities Inc., Had Limited Resources And Fragmented1198 Words   |  5 Pagesunable to examine the broker dealer operations of Madoff Investment securities. The lack of resources also affects the ability of the company to deal with financial and credit crisis (Hornuf Haas, 2014). Most importantly, the company lacked regular examination of audit procedures in analyzing the fraudulent actions. The regulatory oversights have various gaps in regulation that allowed investment and broker dealers to form unclear relationships. The operations of the Ponzi scheme did not possessRead MoreSystem Integrity and Validation1007 Words   |  5 PagesFine Foods management team is considering incorporating proposed computer assisted auditing techniques (CAATs) within its systems. CAATs will increase effi ciency levels of an auditor’s personal productivity during analysis and data extraction of the audit which is beneficial to the performance of Kudler. CAAT will also service as a validation agent providing assurance of data integrity and reliability to the operations of Kudler Fine Foods for its users. CAAT surfaces inconsistencies that can be verifiedRead MoreWhy Would The Owners Of Lakeside1657 Words   |  7 Pagesas the company’s banks, require that an annual audit may be made by an independent CPA firm? Auditing in general, is necessary because of the existence of Information risk or the risk of unreliable information. Owners of lakeside may own the company but they are not closely involved in managing the business with the exception of Rogers, the only owner involved actively in the business’ day to day operations. So, an independent audit for non-managing owners provides a trusted second opinion on lakeside’sRead MoreImportance of External Auditors1110 Words   |  5 Pagesopinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company in the world. In order to maintain and increase the independence of external auditorsRead MoreThe Role Of Auditing Standards On The Agency Theory And Review Common Benefits1291 Words   |  6 Pagesbriefly describes the nature of auditing issues including the independence of auditor – Arthur Anderson and its compliance of auditing standards about the collapse of HIH insurance from five articles. Secondly, it discusses and highlights some ethical issues, stakeholders including the relationships between HIH directors and its auditing team, and outlines their financial and non-financial problems around HIH’s stakeholders. This report also analyze HIH’s auditing issues applying on the agency theory