Auditing and Assurance in Australia

Running Head: AUDITING AND ASSURANCE IN AUSTRALIA
AUDITING AND ASSURANCE IN AUSTRALIA
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1AUDITING AND ASSURANCE IN AUSTRALIA
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Audit Quality and Corporate Scandals...................................................................................2
Restructured Ethical Code......................................................................................................5
Technology and Audit Quality...............................................................................................7
Conclusion and Recommendations............................................................................................9
Reference..................................................................................................................................10

2AUDITING AND ASSURANCE IN AUSTRALIA
Introduction
Technology in audit plays vital role in determination of the level of audit quality. It is
the catalysts, which is helping for shifting focus of the process of the audit. Technology helps
in offering the ability for improving the quality of the audit and adding value to it. Audit is
moving towards being more proactive, working in the real time, forward-looking from being
backward looking. Audit as well as technology provides the insights to the auditors and the
businesses for adapting most effectively in face of the significant changes. Technology is
offering the opportunity for producing the audits at higher quality, which better serves for the
existing purposes (Ey.com., 2019). Organizations are following the path of the transparency
and trust that is encouraging them to seek assurance over numbers. The auditors of the firm
are embracing latest technology for having deeper insights and analysis. They are bringing
critical mindset for every technological innovation. It is promoting business efficiency,
offering customers more points of connections and accelerating time to market. Now a day,
the increase in innovation has raised the expectations to have for providing more accurate,
effective and relevant information assurance of corporate reporting and business
performance. The corporate information that is having higher quality is dependent upon the
integrity of the data. The quality and data integrity can be maintained if the reporting team is
responsible for ensuring higher quality of data input and auditors for having deeper
understanding of facts and figure as well as their accuracy (ABC News., 2019). Therefore, this
report would discuss on the fact that how advancement of technology helps in improvement
of quality of audit.

3AUDITING AND ASSURANCE IN AUSTRALIA
Discussion
Audit Quality and Corporate Scandals
Audit quality is concerned with delivering of appropriate opinions of professions,
which is reliable, independent and understandable as well as supported by adequate evidences
and the objective judgments. In order to ensure quality audit, audit and informational
technological control plays vital role. It assures that audit is based on the integrity of
information technology and organizational finance reporting in order to avoid and prevent
any kind of future corporate failures such as of Commonwealth bank and Enron Corporation.
In the recent years, auditors have been found giving unqualified reports and collecting heavy
fees for audit as well as non-audit (Forbes.com., 2019). Several questions have been raised in
relation to values of company, audit quality work, auditors’ independence, auditor’s
knowledge base and incentives for good audit. The conventional approach of quality of audit
is incomplete as it pays less attention on social and organizational auditing context. It views
that there is diversification of companies into new investments forms and complex
instruments of finance. Therefore, if auditing is done in traditional way then it is just
impossible for auditing in traditional way (Lennox, Wu & Zhang, 2014).
The audit quality is the foundation for maintaining public trust and it is the base on
which the profession of auditing stands. Audit quality can maintained when the audits are
performed in consistent with the requirements of applicable standards of professions and
which is according to the strong quality control system. The quality of audit serves as the
foundation for raising confidence and the trust in capital market. The financial auditors
provide quality services, which has been the growing issues over the recent few years that is
especially in respect of financial scandals, where the auditors play the major role. It is
because of the audited financial statement creditability, there is great impact of the quality of