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Need an argumentative essay on According to Mautz and Sharaf (1961), one of the justifications for a substantial investment into the possibility and nature of auditing theory, is the hope that it will
Need an argumentative essay on According to Mautz and Sharaf (1961), one of the justifications for a substantial investment into the possibility and nature of auditing theory, is the hope that it will provide us with solutions, or at least clues to solutions of problems we now find dif. Needs to be 8 pages. Please no plagiarism.
With advent of corporate scandals, the global demand for quality audit has raised. There were huge changes in the auditing system in United Kingdom regarding transparency issue. However, changes and modifications are still being made due to new issues, emerging from scandals (Institute of Chartered Accountants, 2005).
In the 20th century, auditing has transformed from a traditional audit system into a modern management audit. The development, encountered in management audit, was a result of accountability that was established in various ways. The demand for audit increased with the passage of time. Auditing refers to careful scrutiny of financial statements, so that the decision makers can take necessary decisions properly and rely upon the information that is given in these statements. The decision making process is harmed if deficit remains in auditing by the auditor. It is the duty of the auditor to check transactions that are given in the book of accounts and then opine regarding appropriateness. The essay elaborates auditing theories that are in demand and their value relevance in modern management is depicted clearly. ‘Value relevance’ refers to the auditor’s ability to communicate the process of audit effectively. It also reflects responsibilities of the auditor as well as assurances given by the auditor, during the decision making process.
Elder, Beasley and Arens (2010) have stated that users can obtain reliable information by undertaking independent audit that are performed by auditors. It reduces risk of using wrong information, which may later lead to misrepresentation of financial data. The degree of confidence among users is increased by providing them with a statement of audit. The decision makers use the audited information on an assumption that those are complete, unbiased and accurate. An audit report is issued based on the audit conducted and these reports consist of auditor’s view regarding findings in the financial
