Financial Audit Failures, Research Paper Example

Pages: 1

Words: 364

Research Paper

Perfect financial audit play a vital role in corporate governance, organization risk management, and assumptions testing that are fundamental to the business models of the organization. This facilitates that all the stakeholder needs are addressed more effectively (Pope, 273-283).

Financial audit failures that have been documented in the past have necessitated for implementation of tighter as well as stricter regulation in the process of financial auditing. However, this is a step that has been implemented at a late stage when big losses have already been incurred by the stakeholders (Ashbaugh & Pincus, 417-434).

Financial audit failures have been documented in many organizations. One most notable reason for financial audit failures is laxity in the assembling of ample pertinent data. This problem is further compounded by failure to exercise the required professional care in the course of auditing practices. Auditors may also fail to demonstrate the suitable professional skepticism echelon. If any audit process is to be successful the optimum GAAP requirements should be properly interpreted and applied. Lack of this important consideration is a potential cause of financial audit failures (Abarbanell & Bernard 221-242).

Some notable scandals have occurred when problems associated with financial audit failures are brought to light. Some auditing firms opt to hide vital information, facts as well as figures so that the stakeholders are kept in darkness (Bell, Landsman & Shackelford, 35-43).  After hiding significant financial details, the audit firms sometimes files for bankruptcy which consequently leads to the loss of their rights of auditing. At this point, it is the responsibility of the regulator to try and restore the confidence of the investor. This is the reason that prompts the introduction of tighter regulations in this important field.

Works cited

Abarbanell, J. & Bernard, V. Is the U.S. stock market myopic? Journal of Accounting  Research 221-242, 2000.

Ashbaugh, H. & Pincus, M. 2001. “Domestic accounting standards, international accounting standards, & the predictability of earnings”. Journal of Accounting  Research, 417-434.

Bell, B., Landsman, R. & Shackelford, D., “Auditors’ perceived business risk and audit fees: Analysis and evidence”. Journal of Accounting Research, 35-43, 2001.

Pope, P., “Discussion of disclosure practices, enforcement of accounting standards, and analysts’ forecast accuracy: An international study”. Journal of Accounting  Research , 273-283, 2003.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Research Paper Samples & Examples

Aviation Safety Cost of Risk, Research Paper Example

This is the cost of uncertainty in achieving the aviation industry’s objective of total safety to all publics. Proactive safety management programs Some of the [...]

Pages: 1

Words: 368

Research Paper

Secondary Data Analysis, Research Paper Example

Abstract This work in writing examines the issues surrounding qualitative and quantitative nursing research and examines specific cases in relation to these issues specifically in [...]

Pages: 1

Words: 5561

Research Paper

Financial Management in Health Care, Research Paper Example

Introduction In the Health Industry the HealthCare Financial entities consist of Patient and Non-Patient categories, with the patient consisting of Self Payer, Third Party Payer [...]

Pages: 1

Words: 1476

Research Paper

Art and Artist Interpretation, Research Paper Example

The Wedding Feast at Cana. Paolo Caliari (also known as Veronese). 1562-63. The Louvre, Paris. This painting is an example of Italian Renaissance art, as [...]

Pages: 1

Words: 1341

Research Paper

Treaties and Tribunals, Research Paper Example

This research paper posits to identify the importance among two or more countries; the cultural and political differences that exist between nations affect a tribunal, [...]

Pages: 1

Words: 1287

Research Paper

The Black Hill Battle, Research Paper Example

In the spring of 1876, the United States was entrenched in what came to be known as The Black Hills War.  Fighting between the government [...]

Pages: 1

Words: 1795

Research Paper

Aviation Safety Cost of Risk, Research Paper Example

This is the cost of uncertainty in achieving the aviation industry’s objective of total safety to all publics. Proactive safety management programs Some of the [...]

Pages: 1

Words: 368

Research Paper

Secondary Data Analysis, Research Paper Example

Abstract This work in writing examines the issues surrounding qualitative and quantitative nursing research and examines specific cases in relation to these issues specifically in [...]

Pages: 1

Words: 5561

Research Paper

Financial Management in Health Care, Research Paper Example

Introduction In the Health Industry the HealthCare Financial entities consist of Patient and Non-Patient categories, with the patient consisting of Self Payer, Third Party Payer [...]

Pages: 1

Words: 1476

Research Paper

Art and Artist Interpretation, Research Paper Example

The Wedding Feast at Cana. Paolo Caliari (also known as Veronese). 1562-63. The Louvre, Paris. This painting is an example of Italian Renaissance art, as [...]

Pages: 1

Words: 1341

Research Paper

Treaties and Tribunals, Research Paper Example

This research paper posits to identify the importance among two or more countries; the cultural and political differences that exist between nations affect a tribunal, [...]

Pages: 1

Words: 1287

Research Paper

The Black Hill Battle, Research Paper Example

In the spring of 1876, the United States was entrenched in what came to be known as The Black Hills War.  Fighting between the government [...]

Pages: 1

Words: 1795

Research Paper