In the case of Country B, the engagement of component
auditors by the group engagement team may require more thorough consideration by the group engagement team than the engagement of a component
auditor in Country A.
The two big threats to an
auditor's professional skepticism are familiarity with management and the cult of personality.
While audit managers are typically sensitive to competence deficiencies in their audit staff and can compensate by employing additional procedures themselves,
auditors' ability to effectively respond to IT
auditor competence deficiencies may be determined by their own AIS expertise level.
POST-SOX CHANGE
Auditors are willing to offer initial fee discounts in order to gain access to expected future audit fees, non-audit services, and acquired efficiencies that reduce the cost of performing future audits.
This open and thoughtful approach being taken by the regulators should be applauded by preparers,
auditors and investors.
Further, although (per secretary of the Navy instruction) no official other than the secretary and under secretary can ultimately tell the
auditor general what to audit--or perhaps more important, what not to audit--the organizations we audit influence what the Naval Audit Service does in positive and constructive ways.
After an electronics recycling company has established compliance programs that are appropriate for its facility, the company can expect on-site visits from
auditors. Each may represent a variety of specialties but will have the same purpose for visiting: ensuring that a company's employees, subcontractors and, in many cases, vendors perform to the established standards and practices.
2's concept of "reasonable assurance" by stating its use of that phrase in the audit report means a "high" level of assurance was intended to be obtained by the
auditor. SAS No.
The process of setting new international standards covering
auditor independence and audit quality, says the OECD in its recent "Corporate Governance Survey of OECD Countries," is driven by the realization that "the four large international accounting and audit companies are not in fact a guarantee of uniform quality standards across countries." Thus, the International Organization of Securities Commissions (IOSCO) has worked out principles covering
auditor independence and
auditor oversight.
It is unlawful for an
auditor to provide these services to an audit client.
We believe researchers and policy makers should explore ways to strengthen
auditor objectivity in the presence of uncertain accounting rules.