Auditors cannot change the financial statements. Explain the influence the auditor has on management’s decisions regarding financial statement presentation. Also, explain your perception of the possible tension created by any power struggle inherent in the management-auditor relationship. How do you think auditors should respond when management wants the company’s financial statements to be presented in a certain way but the auditor disagrees?
Answer to relevant QuestionsHow do the capital markets and economy benefit as a result of all public-traded companies having an independent audit? Over the course of Young & Young’s audit of SQL Group, a publicly traded company, Young & Young concluded that SQL’s financial statements presented fairly according to U.S. GAAP, but its internal controls over financial ...Go to the PCAOB Web site (www.pcaobus.org). Explain the PCAOB mission and its Rule making processWhat is the difference between a financial statement error and financial statement fraud?What are Auditing Standards (AS)? Statements on Auditing Standards (SAS)? Which entity issues each? How are they related? To what kinds of audits does each apply?
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