Auditing and Assurance Services

Running Head: AUDITING AND ASSURANCE SERVICES
AUDITING AND ASSURANCE SERVICES
Name of the Student
Name of the University
Author Note

1AUDITING AND ASSURANCE SERVICES
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Audit Quality..........................................................................................................................3
Restructured Ethical Code......................................................................................................5
Technology and Audit Quality...............................................................................................6
Conclusion and Recommendations............................................................................................9
Reference..................................................................................................................................10

2AUDITING AND ASSURANCE SERVICES
Introduction
The auditing has the principal function for enhancing the degree of the confidence
that is felt by the users of the financial statements of the company. Achieving the higher
standard of the audit quality helps in building up the trust as well as confidence in the
profession of audit. However, growing number of scandals has raised the questions regarding
the credibility of the professions of the auditing. Moreover, the new technological
development is at the rapid pace because of the increasing digitization of the world. The
abilities for gathering the more data as well as analyzing it in the increasing sophisticated
ways is bringing the exciting new possibilities of the businesses of all the kinds (ABC News.
2019).
In the professions of the auditing, technological development is the powerful driver in
the improvement of the auditing quality. Now, the auditors are embracing latest technology to
provide greater level of insights and the analysis. Technology promotes the business
efficiencies, offer connections points to customers and accelerates time to market that was not
before. These innovations have increased the level of the expectations to have much more
relevant, timely as well as accurate information on business performances as well as assured
corporate reporting. The quality of the audit is related with delivering the appropriate
opinions of professions, which should be reliable, independent and understandable as well as
it should be supported by sufficient level of evidences and the objective judgments.
Therefore, this assignment would discuss regarding how technological advancement would
help in improvement of quality of audit.

3AUDITING AND ASSURANCE SERVICES
Discussion
Audit Quality
Auditors plays major role in the contributions towards the creditability of financial
statements for which they are reporting. The audit that is of higher quality helps in supporting
the financial stability. The quality of the audit is known to be fundamental to maintain public
trusts and confidence. It is the key on which the reputation of the audit professions stands.
The quality of the audit is the foundation to instill the trust and the confidence in the capital
market (Dowling & Leech, 2014). In the recent past few years, the need for the auditors to
provide higher quality services has been increased. It is especially, because of the growing
number of the financial scandals. In almost all the scandals, the auditors has played major
role. There is great effect of the audit quality on the creditability of the financial statements,
while taking into considerations appropriate level of auditing quality by stakeholders
(Australian Financial Review. 2019).
In the recent years, auditors use to take large sum of auditing as well as non- auditing
fees, which have raised number of questions relating to quality, independence, values, and
economic incentives of the auditors. The conventional approaches of quality of audit are not
complete. There is quite less attention paid by on the social and organizational context of
auditing. The conventional approach makes the assumptions that there is the diversification
of the companies in the new forms of investments and complex financial instruments.
Therefore, it becomes quite difficult for the auditing firm for audit the transactions in
traditional way (Forbes.com. 2019).
During year 2000, the sequence of scandals one by one has raised serious questions
and concerns on the audit quality. As the result of which, huge reforms have been started in
the field of the audit, which has raised the concern to increase confidence in the financial
market. The first example in this case is of Commonwealth Bank of Australia. In between