Audit Processes and Corporate Failure

Running head: AUDIT PROCESSES AND CORPORATE FAILURE
ACC320 Contemporary Issues in Accounting
Semester 2 2018
Research Proposal
Student Name:
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Title: Audit Processes and Corporate Failure
Submission Date:

1AUDIT PROCESSES AND CORPORATE FAILURE
Acknowledgement
I certify that I have carefully reviewed the university’s academic misconduct policy. I
understand that the source of ideas must be referenced and that quotation marks and a
reference are required when directly quoting anyone else’s words.

2AUDIT PROCESSES AND CORPORATE FAILURE
Table of Contents
Introduction................................................................................................................................3
Practical Motivation...............................................................................................................3
Theoretical Motivation...........................................................................................................4
Literature Review.......................................................................................................................4
Concept of Audit and Accounting Standards.........................................................................4
Concept and Reasons of Corporate Failure............................................................................5
Relationship between Audit process and Corporate Failure in Australian Organizations.....6
Hypotheses.................................................................................................................................7
References..................................................................................................................................8
Appendices...............................................................................................................................10

3AUDIT PROCESSES AND CORPORATE FAILURE
Introduction
In the fiercely competitive scenario, external auditing processes is considered to act as
a technology that facilitates all the stakeholders of the organization to manage, control and
deal with aspects in presenting risks that might lead to corporate failure (Ahmed and
Ndayisaba 2016). The objective of the current paper is to analyze the impact of audit
processes in resulting to corporate failure within Australian companies.
Practical Motivation
The risk of corporate failure is drastically faced by the stakeholders of the
organization as such situation has become common internationally. A huge number of public
and quoted organizations in Australia attain a misrepresented audit report. The auditors of the
company get involved in fraud knowingly as they are observed to accept bribe for such
misstatements (Appuhami and Bhuyan 2015). Misconducts regarding the auditors
responsibilities are an increasing concern in Australia companies and fraud is observed to be
a vital aspect of the “expectation gap” that is present between expectations of the financial
statement users and the reports developed by the auditors. The negligence from the side of the
auditors is resulting in liquidation of several companies in Australia. The accountants and
managers of the organizations are dealing in issues in establishing more improvement in their
corporate governance structures particularly in its internal control processes along with
potential areas of attaining cost savings and audit efficient in avoiding corporate failure (Ball,
Tyler and Wells 2015). Focused on such serious concern faced by the organizations, the
current research will focus on analyzing the ways in which the responsibilities of
stakeholders can be enhanced in conducting corporate audit in accordance with the auditing
standards. Moreover, the research will also explain the practical implementation of IFRS
guidelines that can facilitate in decreasing the occurrence of corporate failure for Australian
organizations.