Integrated Accounting Projects | Report

Running Head: INTEGRATED ACCOUNTING PROJECTS
INTEGRATED ACCOUNTING PROJECTS
Name of the Student
Name of the University
Author Note

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Table of Contents
1.Introduction.............................................................................................................................2
1.1 Background of the study..................................................................................................2
2. Research Problem...................................................................................................................4
2.1 Research Aims and Objective..............................................................................................5
2.2 Research Questions..............................................................................................................5
2.3 Practical Deployment within Industry.................................................................................5
2.4 Conceptual Framework........................................................................................................7
2.5 Hypothesis Formation..........................................................................................................8
3.Research Methodology............................................................................................................8
3.1 Research Design...............................................................................................................8
3.2 Kinds of Data used...............................................................................................................8
3.3 Data Collection Method...................................................................................................9
3.4 Sample and sample size.......................................................................................................9
3.5 Data Analysis Plan...............................................................................................................9
4. Limitations of Research.........................................................................................................9
5. Reference..............................................................................................................................11
6. Appendix:.............................................................................................................................13
Questionnaires for professionals:.............................................................................................13

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1.Introduction
The auditing is the term that refers to systematic and the independent examination of
the organizational books; documents, accounts and the vouchers for ascertaining how far the
financial statement presents fair and true view of the concern. The auditing processes by the
organizations, aimsto ensure better governance. The responsibility of the auditor is most
important, particularly in respect of shareholders and generally in respects of stakeholders
(Guiral et al. 2015). The auditors are required to keep this in mind that their requirements,
which are in accordance to the regulations, laws and public expectations are high. The
auditors ensure that the standards of the auditing have been complied. In case of any non-
compliance, the suggestions are provided by the auditors to management of the client, for
providing the necessary adjustments. In case of the management of the company, if they
unwilling for providing the adjustments then auditors issues the modified report of audit
(Narayan Roy, 2015).
However, for the decades, the professions of the auditing havesuffered with the series
of challenges. There are certain challenges, which arises from the internal sources and there
are other challenges, which arises from the external sources. The instance of the internal
challenges includes lack of the expertise, threat of the independence, staffing problems and
others. Further, the instance of the external challenges includes, pressures from the clients,
regulations, expectations gap and changes in the regulatory environment (Van Rinsum,
Maas&Stolker, 2018). There are various scandals in the past few years that have raised
numerous questions on the auditing professions. Some of the recent scandals suggest that
management of the audited entities has pressurized auditor to work in accordance with their
strategy and views (Dhaliwal et al. 2016). This means that the auditors or firm are not
accusedto lack of the negligence or the competencies rather they areaccused more
fundamentally on the deceit and disloyalty.As the result, auditors are criticized for their poor
audit work andpoor quality of the work.Hence, this research paper will be discussing
regarding various recent updates and challenges in the audit practice (Dattin, 2017).
1.1 Background of the study
Audit plays vital role in functioning of the capital markets. There is inelastic demand
of the audit practices by the business organizations. However, the financial scandals are
damaging the essence of the professions of the auditing. In the auditing profession, “the
heartbeat of the auditing profession” is considered as “the public trust”. In case, if this trust is

3INTEGRATED ACCOUNTING PROJECTS
betrayed then the professional financial also is destroyed. Auditors in the day-to-day
operations are faced by many challenges (Garcia-Blandon &Argiles, 2015). The auditor’s
independence implies the absence of the external pressures or the personal relationship,
which might comprises the integrity and objectivity of the auditors who are exerting their
concerned responsibilities (Tepalagul& Lin, 2015). The independence of the auditor
presupposes the existence of the personal and professional distance, which exists between the
clients and the auditor and the abilities for forming the judgments, which is biasedand
consists of the interest. There existnumerous factors, which influences the independence of
the auditor (Crockett & Ali, 2015). In the audit quality, independence is important
determinant.These factors include familiarity to the client, financial conditions of firms and
sizes of the clients relating to audit firm’s sizes. If the auditor is independent from the client
then the quality of the audit is perceived to be high (Husnin,Nawawi & PutehSalin, 2016). It
is because the independent auditor more likely reports on the discovered breach in the
financial statements of the clients and is less likely for giving in to the demands of the clients.
The auditors, who are independent, truly are less tied up with clients and hence, they are able
for provide higher quality audits. If the auditors are not associated with clients then it allows
auditor for exercising the unimpeded judgment, while planning and conducting the audit (Du,
Ronen & Ye, 2015).
Since, the auditor independence is the critical issue for profession of auditing; there
are various studies that have been performed in this particular area. The threat to
independence of auditor includes client importance, tenure of auditor and the services of non-
audit. The importance of client is consists of degree to which the auditors are economically
dependent on clients (Boyle,DeZoort&Hermanson, 2015). Afterservices are provided to
clients then the audit firm receives remunerations. This results in the auditors being
financially bonded to clients. The client constitutes larger part of the portfolio of the auditor.
The auditor has the incentives for retaining the clients to the warrant the future sources of the
revenues and profits and hence, for compromising the independence and acting in the favor
of clients. Moreover, auditor independence is also adversely affected by the non-audit
services (Haron et al. 2016). The external auditor receives more income when they provide
the service of non-audit to clients. This results into greater economic dependence. Further,
tenure of audit leads towards impairments of the independence. When the relationship of
auditor and the client lengthens, then auditor with the client develops close relationships and
it becomes more likely for acting in the favor of the management that results in the reduction