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To what extent can we rely on auditors?

Bogollu, Mayur Reddy (2019) To what extent can we rely on auditors? Masters thesis, Dublin, National College of Ireland.

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Abstract

The current business environment is highly competitive, and some businesses may grow but with fraudulent transactions in theIr financial statements. With regard to this, in-company audit committees and external audits have been developed to examine the truthfulness of the financial report. The external audit is mandated by law and typically applies to public companies and large-scale private companies. The main objective of this study is to research the nature of audit and the associated assurance that would be necessary for an auditor to express their opinion on the prepared financial statements of an organization in all material respects according to the applicable financial reporting framework. In addition, this study is also analysing the role of an auditor to increase the wealth of the investors. This analysis can be done through achieving different research objectives such as identifying the importance of auditing to determine the frauds and misstatements in financial transactions, statements and financial reporting. Moreover, this research has also had an important consideration on the evaluation of the role of an internal and external auditor to increase the wealth of shareholders as it is beneficial for the value or development of the business. Similarly, it is also identified that this research study also examined the changes needed in auditing to improve standards to prevent or identify scams in future because several scams have been found previously in different organizations related to financial reporting.

With regard to this research, it is found that the internal and external auditor each play a significant role to overcome the transactional and financial reporting issues in an organization. In addition to this, it is also determined from this research study that an organization should also follow a supportive audit reports format to overcome mistakes in the financial reports prepared by the organization. With reference to developing formats for audit reports, the audit committee and audit team are responsible for including material information, results of operation and cash flows and financial position in the format. It becomes easier for the auditor to identify the issues in a well-managed format where external auditor identifies the fraud related to asset misappropriation, corruptions, and financial statement fraud. While rotation of the external audit function has been stressed as a mechanism for imposing more forensic external oversight it is also critically important that training in fraud detection should be provided to the auditing staff.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Financial Management
H Social Sciences > HG Finance > Financial Services
H Social Sciences > HG Finance > Investment
Divisions: School of Business > Master of Science in Management
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 23 Oct 2019 10:34
Last Modified: 23 Oct 2019 10:34
URI: http://trap.ncirl.ie/id/eprint/4023

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