StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The role of an Auditor and Audit Firm - Essay Example

Cite this document
Summary
The Role of an Auditor and Audit Firm Letter to Apollo Shoes Name University Course Tutor Date To Apollo Shoes We Kantha Audit firm offer various services to our clients such as internal audit services. There has been a drastic change in the role played by internal audit due to increased globalization, economic conditions, and emerging risks (Braiotta, & Braiotta, 1994)…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.3% of users find it useful
The role of an Auditor and Audit Firm
Read Text Preview

Extract of sample "The role of an Auditor and Audit Firm"

The Role of an Auditor and Audit Firm Letter to Apollo Shoes To Apollo Shoes We Kantha Audit firm offer various services to our clients such as internal audit services. There has been a drastic change in the role played by internal audit due to increased globalization, economic conditions, and emerging risks (Braiotta, & Braiotta, 1994). This state of affairs creates a changing environment and a fresh prospect for internal audit to display its value. In the ever- hanging environment, numerous companies are finding it difficult to identify and manage the complex risk exposures, of which will assist Apollo Shoes.

 Our firm will offer services aimed at revolutionising the function of internal audit. Our company offers a combination of consulting services tackling the vital issues challenging internal auditors, such as risk assessments, technology, training, organizational and process- reengineering, reviews on quality assurance, as well as benchmarking. Apollo Shoes can also benefit from an external audit of their financial statements. We as the external auditor employ a process that first begins with a wide understanding of your corporate entity or business.

Secondly, we consider risks faced by your company, the risk control measures employed by the management and the level of transparency during reporting of findings to stakeholders (Moeller & Robert, 2004). The core elements are the capabilities to adapt consistently to business expansion and dynamic needs, proactive recognition of issues and timely, cooperative resolution- involving management all through the process. Furthermore, our company utilizes a universal audit methodology on all audit practices not considering the location in order to achieve consistency and uniformity in approach.

 Our firm also has continuous and persistent commitment to continuous expansion. We will also offer regulatory compliance and reporting service to Apollo Shoes. This aspect ought to be examined as a typical extension of the governance roles undertaken by corporate boards and top management (New Zealand, 1995). This is because only proper governance can ascertain that compliance runs parallel to Apollo Shoes business objectives and strategies of risk management. Thus, in so doing adding not only cost but also real value to your company.

We offer advice, support, and regulatory services to assist organisations carrying out regulator- controlled activities to handle regulatory risks in an environment that is ever- changing. Our firm aims at employing a proactive as opposed to a monitoring approach as part of its strategic necessity. In addition, our firm will also conduct Apollo Shoes systems and process assurance service. In the modern- day business world, financial reporting and IT environments are increasingly becoming complicated as increased dependence is placed on the data emanating from these processes and systems (Moeller & Robert, 2004).

Furthermore, numerous countries have new regulations putting more stress on internal controls and habitually need autonomous assurance of the efficiency of internal controls. In order to achieve timeliness and accuracy of management decision- making and financial reporting information, of vital importance is documentation, attention to detail, and controls operation. Through our continued professional service and relationships with our clients, we offer third party assurances as a critical component of our auditing process.

This is in line with the changes in business environments, increase in demand for transparency and trust as companies depend further on other companies to meet their corporate goals (Maletta, 1989). During the current tough and volatile economic times, obtaining a competitive edge and being confident in your processes, controls, procedures are business necessities. Companies must develop innovative methods to increase efficiencies while lowering costs to be market leaders. Our firm will present Apollo Shoes with assurance further than the audit of financial statements, by delivering creative solutions necessary for augmenting revenue, market share and market reputation.

In order to provide the above services there are qualifications that auditors should possess. The first and most basic requirement is being a professional accountant by attaining membership of an accounting body called IFAC and meeting the requirements set out in IES 1 to 6 (Maletta, 1989). In addition, one should possess an undergraduate degree and have exemplary skills, knowledge, professional values, practical experience, as well as attitudes and ethics prescribed in the mentioned accounting standards of which all our audit team members have.

Furthermore, apart from meeting the requirements of IES 2, audit professionals should be knowledgeable mainly in three vital areas: financial accounting and reporting, financial statement audit, as well as information technology (Moeller & Robert, 2004). They should also have had relevant practical experience prior to being effectively involved in an assignment of financial statement audit. This experience either can be pre- qualification, or be obtained during or after professional accountancy qualification.

This experience can be achieved under the supervision of an auditor in an appropriate organization. This is to ensure a great level of diligence and professionalism, as auditors are financial watchdogs Our audit team consists of professionals knowledgeable and experienced and stipulated above. The team consists of experienced risk regulatory professionals, such as ex- regulators who, in addition to understanding the rules, have assessed and implemented compliance against them (New Zealand, 1995).

We are adequately staffed with experienced audit seniors and assistants who will advice Apollo Shoes strategic level managers to capitalize on any competitive edge from operational level to regulation, and reduce the disruptions and costs facing your business, therefore, creating efficient management of time. The audit team is mandated to ensure safety of Apollo Shoes from reputational damage and regulatory infringement. While auditing management systems, the perspective of the auditor spots opportunities for improvements that result in improved performance (Braiotta, & Braiotta, 1994).

The auditors play a role of observing trends and processes and engaging people within the representative group of the organization, such as middle level and senior managers, ensuring the effective implementation and functioning of the management system and verifying its alignment with their wants and needs. We as the auditors after our examinations and audits make recommendations and report our findings expressing our opinion through our audit report to Apollo shoes. Yours Sincerely Audit Manager Kantha Audit firm References Braiotta, L.

, & Braiotta, L. (1994). The audit committee handbook. New York: Wiley. Maletta, M. J. (1989). The effect of inherent risk and control design strength on external auditors' decisions to rely on internal audit functions. Ann Arbor, Mich: UMI. Moeller, Robert R. (2004). Sarbanes-Oxley and the New Internal Auditing Rules. Wiley. New Zealand. (1995). The role and functions of the Audit Office. Wellington: Office of the Controller and Auditor-General.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The role of an Auditor and Audit Firm Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1442535-the-cpa-profession-and-the-role-of-the-auditor
(The Role of an Auditor and Audit Firm Essay Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/finance-accounting/1442535-the-cpa-profession-and-the-role-of-the-auditor.
“The Role of an Auditor and Audit Firm Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/finance-accounting/1442535-the-cpa-profession-and-the-role-of-the-auditor.
  • Cited: 0 times

CHECK THESE SAMPLES OF The role of an Auditor and Audit Firm

Advanced Auditing Process

The key findings of a UK survey carried out by the University of Dundee in 1995 under the title "The financial auditor and the environment" can be summarized as follows: - For most auditors "environment" is just another business issue and is treated no Differently from any other area of actual and potential risk.... … To do audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information....
15 Pages (3750 words) Essay

External Audit and Financial Statements

Effective co-operation between external auditor and internal auditor means more than avoiding duplication.... hellip; Nevertheless some of the means of achieving their respective objectives are often similar and thus certain of the work of internal auditor may be useful in determining the nature, timing and extent of external audit procedures.... Therefore, their roles and objectives are different but complementary. The scope of external auditor's work covers the audit of financial statements, probity in the use of public money and value for money in the use of resources....
6 Pages (1500 words) Essay

Auditors Independence

Auditing is an incredibly important matter in the world today, and if you want to learn about a matter such as this, then there are several embedded matters that you will need to inform yourself on first; such as the fact that an auditor's objective is basically defined as that of "to provide a high level of assurance through the issue of a positive expression of opinion that enhances the credibility of an assertion about an accountability matter" (Gay & Simnett, 2003, p.... hellip; However the fact of this auditor to be independent is clearly the most important factor here, and independence is defined as being the "ability to withstand pressure from management influence when conducting an audit or providing audit-related services, so that one's professional integrity is not compromised....
7 Pages (1750 words) Essay

Audit, Controls, and Management Information Systems

the external auditor and the board, review the annual and quarterly financial statements with the external auditor and to review annual reports to shareholders, among many others (American Bar Association, 2007).... he purpose of external audits is to evaluate an organization's accounting procedures and to provide an opinion about the true and fair state of the firm's financial standing.... The term audit refers to different types of external checks (Henley, 1989)....
7 Pages (1750 words) Essay

DOES AUDIT REGULATION ENSURE AUDITOR INDEPENDANCE

Near the beginning of 1928, a perspective in the Paper of Accountancy emphasized the subsistence of a clash of interest when an auditor is a stockowner, executive,... It is supposed that part of the solution in deciphering… The Ethics Committee of the International Federation of Accountants has also highlighted the notion of independence as an ethical subject in its principles The objective of the present research is to define the UK auditor's independence in the regulation of audit, the scope of competences and responsibilities of various professionals, and to evaluate who and what can be the best practice in auditor independence....
40 Pages (10000 words) Essay

Audit and Assurance

It outlines the main purposes of an audit, types of assurance engagements, discusses the independence of the auditor and assurance services for an external audit, ethical threats developed by the International Federation of Accountants (IFAC).... This is the main area where an auditor's independence is brought under question.... There are many different types of assurance engagements:an auditor usually gives out two types of assurances, Reasonable or Limited Assurance....
6 Pages (1500 words) Essay

External Auditors and Fraud Examiners

Forensic auditing is a special purpose audit to unearth financial frauds and other crimes.... This paper illustrates that an external auditor is so called as to distinguish him from an internal auditor who is an in-house professional.... While the internal auditor is a paid employee of the entity, the external auditor is an independent professional engaged by the entity for a fee and as required by Companies Act....
15 Pages (3750 words) Essay

Independence of Audit Firms

The issue in the case deals with audit independence, and it is the aim of this study to make an in-depth analysis of the various issues that relate to audit independence and the measures that can be undertaken by an audit firm as well as those provided under law and statutes in ensuring audit independence.... The issue has merit because it touches on the ability of the audit firm to perform its audit duties in an objective manner and maintenance of integrity that can impact the firm negatively if not handled well....
12 Pages (3000 words) Dissertation
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us