Auditing and Assurance in Australia- Report
11 Pages3121 Words101 Views
Added on 2020-02-24
Auditing and Assurance in Australia- Report
Added on 2020-02-24
ShareRelated Documents
Running head: AUDITING AND ASSURANCE IN AUSTRALIAAuditing and Assurance in Australia Name of Student:Name of University:Author’s Note:
1AUDITING AND ASSURANCE IN AUSTRALIAIntroductionThe report is intended to state on the different types of the opportunities which are relatedto state on the opportunities and challenges associated to present auditing profession. The mainaspects of the discussion have been further seen to be associated to discuss the theories with therecent regulatory attempts to improve the audit quality in Australia. The various types of thediscussions of the report have been supported with suitable examples and relevant cases. Someof the different types of the other aspects of the report have been further seen to investigate thepressures on the accountants faced in the working environment and examining the challenge ofthe accountant’s ability with the ethical standards. The other aspects of the opportunities andchallenges have been able to decide on the factor which has identified the pressures which mayaffect the accountants and determine the potential remedies which can ensure the use of theethical standards upheld. The report has given emphasis on the research survey drawn in theknowledge and the experience of the Australian based professionals and various types of thewider application of the same. The other aspect of the accountants has been further consideredbased on the various aspects of the controversies which are considered for depicting of theprofile cases such as ABC Learning Centre and HIH. The latter part of the report has further ableto suggest on the improvement measures to improve the present situation (CFO. 2015).
2AUDITING AND ASSURANCE IN AUSTRALIADiscussionEthics is defined as an attitude or a particular decision which is determined as right orwrong. It has been further discerned that ethics is seen to be having number of practicalapplications to the field of the human activity. In the accountancy profession the concept ofethics has been seen to be having many assumptions such as claiming of a false expense.Someof the various types of the other ethical issue may be seen in terms of recording of the overtimeand compensation in the audit, when the information provided is seen to be insufficient in nature.The same has been questioned with true and fair view. It has been further discerned that the blindeye to the irregularities has been specific with the tax affairs of the client.Some of the ethicalconcerns have been observed in the manipulative concerns that the financial accountants do notshow it to be true. This has been further seen to make the people aware of the conflicts of theinterest in the business dealings.The various nature of the ethical decision has been seen to emerge from the myriad of thevarying nature of the professional accountant. The main concern of the accountants has beendiscerned in a particular way which may be trivial but lead to severe consequences for theconcerned group to testify the scandals. The field of ethics is seen with the possibility of decisionof stating right or wrong. The consequences of the action justify this possibility and motivate theaction focusing the intentioned behaviour (Icas.com. 2017). Based on the past cases, ABC Developmental Centres was once known as the majorpublicly listed child care operator globally. The market capitalisation was discerned with $ 4.1Billion with total company worth of $ 296 million. The expected decrease of 42% in the profitduring the second half of 2007 was further seen to decrease with $ 37.1 million and the lack of
3AUDITING AND ASSURANCE IN AUSTRALIAability to service a debt of $ 1.8 billion, which was the main reason for it being defunct. Themain reason for the liquidation of the company was seen due to the increasing obligations for thedebt services and the inability of the auditors to sign off the accounts. The federal governmenthas been seen to inject $ 22 million to keep the child centre operational until 2008. The demiseof the ABC learning centre has been seen to be the main form of the reason which has been seento be associated to the government subsidies and auditing fraud. The main concern for theorganization has involved a staff cost of 80% to 90% of the operating revenues. ABC learningcentre was only able to achieve a total profit of 30% and the huge discrepancy in the report hasbeen seen as the main concern for the company (Crikey 2008).Another challenge has been seen in form of the collapse of HIH founded in 1968. Themain collapse has been seen with the collapse of $ 8 billion assets and this has been identified tobe one of the largest insurance firms. The offsetting of the assets with the insurance claims anddebts has been seen as the reason for the failure of the company. Some of the other charges onthe company have been seen in terms of the dissemination of the information to be false. On oneoccasion the company was seen to be charged for misleading statements and failing to dischargethe duties and in the best interest of the company (Sirtes, Lo Surdo and White 2016).Another ethical issue with the accounting fraud has been further seen to be identified incase of Target Corporation. It has been seen to be discerned that Target has been seen to beaccounted of performing inflated income by $21 million in the six months to December 31 lastyear. The early initiative to address the recent regulatory attempts to improve the audit qualityin Australia has been seen to be related “Australian Securities Commission (ASC)”, formed in 1
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Auditing and Assurancelg...
|12
|3168
|439
Opportunities and Challenges for the Auditing Professionlg...
|14
|3437
|79
Auditing and Assurance | Assignmentlg...
|14
|3622
|39
Auditing and Assurance Serviceslg...
|12
|3197
|99
Auditing and Assurance Serviceslg...
|13
|3498
|38
Audit Report And Assurance Services Assignmentlg...
|12
|3421
|14