Auditor's Public Interest Responsibilities and Audit Quality Name of the University Author's Note Executive Summary

Running head: AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
Auditor’s Public Interest Responsibilities and Audit Quality
Name of the Student
Name of the University
Author’s Note

1AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
Executive Summary
As per the findings of the report, the risk of incorrect investment decision will be developed
for the key stakeholders of Crown Resorts in case there are material misstatements in the
financial statements. After that, the auditors are needed to follow the principles of APES
110 for complying with the public interest requirements of the profession. The auditors are
needed to take the lessons from the collapse of Enron for avoiding the occurrence of this
types of collapse further in Australia.

2AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
Table of Contents
1. Introduction............................................................................................................................3
2. Key Stakeholders Analysis......................................................................................................3
3. Auditors’ Public Interest Requirements as per APES 110......................................................5
3.1 Auditor Independence.....................................................................................................5
3.2 Whistleblowing................................................................................................................5
3.3 APES 110 Public Interest Requirements...........................................................................6
4. Audit Lessons from Enron Scandal and Arthur Andersen’s Behaviour..................................6
4.1 Audit Lessons from Enron Scandal...................................................................................6
4.2 Audit Lessons from Arthur Andersen’s Behaviour...........................................................9
5. Audit Quality and Strategies for Addressing the Warning.....................................................9
6. Conclusion............................................................................................................................12
7. References............................................................................................................................14
8. Appendices...........................................................................................................................17

3AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
1. Introduction
Auditing is considered as the process of disciplined as well as inspection of the
financial statements and accenting records of the business organizations with the aim to
find the material misstatements in them so that the key stakeholders can obtain the correct
financial information about the company (Reding 2013). Moreover, the auditors are needed
to provide their opinion on the fact that whether the financial statements are prepared and
predicated in the truest and fair manner. It is on the auditors of the companies to maintain
the quality of audit (Chan and Vasarhelyi 2018). At the same time, taking into consideration
the public interest requirements is one of the major responsibilities of the auditors. In this
context, it needs to be mentioned that the auditors are needed to maintain the required
adherence with the principles and requirements of auditor independence. There can be
major frauds in the business organizations in the absence of quality audit (Louwers et al.
2015). The main objective of this report is the analysis and evaluation of the public interest
requirements of the auditors for improving the audit quality.
2. Key Stakeholders Analysis
It needs to be mentioned that the incorrect recognition, disclosure and allocation of
the material misstatements in the financial statements can create certain risks for the key
stakeholders and this aspect is also applicable for Crown Resorts Limited (Crown Resorts).
The following discussion shows the impact of material misstatements on certain key
stakeholders of Crown Resorts:
Shareholders: It can be seen from the appendix that Crown Resorts consider the
Shareholders as their key stakeholders and the company engages with this stakeholders
group through annual general meeting, investor presentation and others