AUDITING AND ASSURANCE SERVICES.

Running head: AUDITING AND ASSURANCE SERVICES
Auditing and Assurance Services
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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AUDITING AND ASSURANCE SERVICES
Synopsis:
The field of "auditing" associates the scientific analysis of the operating statements of
the organisations so that the existence of any substance misrepresentation could be detected
in these statements. Currently, there are "four" largest auditing organisations in the world,
they are together known as the "Big Four" auditing organisations. These companies are-
"PwC, KPMG, Deloitte and EY". It could be noticed that these "audit" companies have the
liability to examine the "financial accounts" of the multinational organisations all over the
globe as they are famous for giving quality "audit" facilities to their customers. It could be
observed from the above scrutiny that the "auditors" of the "Big Four" auditing organisations
have incorporated in few of the main "professional" wrongdoings like- supply of exaggerated
number of "non-audit" assistance, publishing of wrong "audit" ideas, preparation of wrong
"audit report" and many more. Owing to this fact, it is required for the "auditors" to obey
these current managerial improvements and formulations for raising the "audit quality".

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AUDITING AND ASSURANCE SERVICES
Introduction:
The field of "auditing" associates the scientific analysis of the operating statements of
the organisations so that the existence of any substance misrepresentation could be detected
in these statements. It is the duty of the "auditor" to perform their particular audit related
tasks in this field while it is required that they keep "professional" honesty as well as legal
procedures of "audit" (Aguado Romero & López Hernández, 2016). Currently, there are
"four" largest auditing organisations in the world, they are together known as the "Big Four"
auditing organisations. These companies are- "PwC, KPMG, Deloitte and EY". It could be
noticed that these "audit" companies have the liability to examine the "financial accounts" of
the multinational organisations all over the globe as they are famous for giving quality
"audit" facilities to their customers. Moreover, over few years, the four big "audit" companies
have experienced huge elucidation relating to the quality of their "audit" alongside the given
"audit" reviews (Ion, et al., 2017). Many have declared to have assessed the "audit" tasks of
these organisations by the "Banking Royal Commission". The main purpose of this study is
to evaluate the legitimacy of this declaration. The initial portion of this paper focuses
particularly on the factors "why" the "Banking Royal Commission" might examine the
"audit" tasks of these "four" companies. The second portion of this study emphasises on the
"audit opportunities", "challenges" and current administrative improvements in the
"Australian audits".
Specific Discussion:
The given "article" in "ABC News" points out the currently ventured endeavour of the
"Banking Royal Commission" to analyse the "audit works" of the "Big Four" auditing
organisations (abc.net.au, 2019). This portion gives the approval on the needed examination
of the "audit works" of these companies by the "Banking Royal Commission". The "Banking

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AUDITING AND ASSURANCE SERVICES
Royal Commission" is liable for carrying out the best possible assessment on the attributes
that are crucial from the viewpoint of the common people; majorly, it carries out
examinations on the wrong-doings in the "industries" such as- "banking", "superannuation"
and many more. The incorporation of wrongdoings directs towards the analysis of the
"Banking Royal Commission".
There are a few reasons that are of key nature to the "audit profession" such as-
"independence of the auditors", "non-audit services" and "quality of audit". "Independence of
the auditors" is both the "external" and "internal" "independence of the auditors" from the
"audit clients"; and these concerns could be "financial interest" and "non-financial interest"
(Clarke, et al., 2017). "Audit quality" is treated as the period when the "auditors"
appropriately assesses the "financial reports" of the "clients" while keeping full attachment to
the "audit" laws. "Audit quality" is connected to the "independence of the auditors" because
the "independence of the auditors" from the "audit client" devotes to the happening of
"quality audit". Aside from the "auditing services", the "auditors" have been giving a few
other assistances to the "audit clients", which are treated as "non-audit services" (Lins,
Schneider & Sunyaev, 2016). It is needed for the "auditors" to levy distinct "fees" for giving
"non-audit services" since these type of assistances do not have any relation with the "audit"
of the operating statements. "Auditor's independence" could be "negatively" affected by the
"non-audit" assistances.
The given "article" in "ABC News" shows that the "Big Four" auditing organisations
are giving major "consultancy" as well as "non-audit" assistances to their "audit clients"
while they have the liability to "audit" the profit and loss statements of these similar
organisations "independently" this directs towards the contrast of "interest" (abc.net.au,
2019). According to "Mr. Brooks", the "audit clients" are used to receiving key suggestions in