Put yourself in the position of the person hired as controller in the above situation. Suppose the chair of the board moves to discontinue the annual audit because Hughes Corporation now has your services on a full-time basis. You are invited to express your views to the board. Explain how you would discuss the nature of your job as controller and your views on the discontinuance of the annual audit.
Answer to relevant QuestionsIdentify four major factors affecting information risk that make the need for independent audits important in today’s business world. Give two examples for each. What do you think management certification of financial statements means? Has management’s responsibility changed since the inception of SOX? Why do we need auditors if management “certifies” its financial statements? Why does an auditor obtain an understanding of the internal control system?What three elements of planning and supervision are considered essential in audit practice?The Canadian Public Accountability Board (CPAB) and the Public Company Accounting Oversight Board (PCAOB) in the United States will provide oversight for public accountants who audit public companies. What are the objectives ...
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