美国独立审计论文范文 [5]
论文作者:www.51lunwen.org论文属性:作业 Assignment登出时间:2014-06-13编辑:lzm点击率:12103
论文字数:5838论文编号:org201406131450554257语种:英语 English地区:中国价格:免费论文
关键词:独立审计论文范文Audit ServicesAudit IndependenceAccounting Review
摘要:To conclude, some suggestions are given below:
Promote the NAS in Chinese audit market. As illustrated above, NAS will enhance the audit work rather than impair the independence, the promotion of NAS will help to increase the Chinese audits’ quality and enhance the auditors’ performance.
rather than contempt.) Instead perhaps the auditors in charge of the Enron audit may have overlooked or supported their client’s overly ‘‘aggressive’’ accounting, misleading, and possibly fraudulent accounting practices in order to protect their very salaries and bonuses. Another option is that as many critics have charged, the gatekeepers may have been corrupted by the sizeable audit, and possibly the non-audit fees paid by Enron.
Andersen’s audit personnel also might have been incapable of understanding the complex financial entities and instruments structured by Enron’s chief financial officer, Andrew Fastow. These auditors dealt with Enron when it was an oil and gas producer and distributor. In recent years, it became primarily a dealer in financial instruments and a developer of new ventures. For reasons that have yet to be explained, Andersen did not replace these auditors or (apparently) provide them with the requisite expertise. Another lesson, then, is that CPA firms should ascertain that their personnel are capable of dealing with the presently existing activities of their clients.’ (Benston and Hartgraves, 2002, p 124)
Yinguangxia & Zhongtianqin
On July 30, 2002, Yinguangxia, a Shenzhen-listed company was filed for alleged stock fraud. This is the first group of lawsuits against the company that have been accepted by the courts after the China Securities Regulatory Commission (CSRC) confirmed in late April 2002, after an investigation, that Yinguangxia filed false profit reports. The CSRC found that the annual business reports of the company from 1998 to 2000 included fraudulent profit claims totaling more than 17 million yuan (US$2 million), 177 million yuan (US$21 million) and 567 million yuan (US$69 million) respectively, according to an earlier Xinhua report. The company was then fined 600,000 yuan (US$72,000) by the CSRC. After the news broke out the share price of the company slumped sharply, hitting investors with huge losses.
The discovery of Yinguangxia's illegal activity exposed Shenzhen-based Zhongtianqin, one of China's Big Five accounting firms accounting firm, which helped Yinguangxia fabricate profit reports to appear like a top performer. Despite the accounting fraud, Zhongtianqin also suffered an audit failure which was mainly due to a lack of relevant foreign trade knowledge. Zhongtianqin’s license has been revoked by the Ministry of Finance.
Zhongtianqin did not provide non-audit services to Yinguangxia, however, it still suffer the audit failure. In other word, audit failure result from many factors as illustrated in the Enron case rather than the provision of NAS itself.
The Zhongtianqin case exposes the audit problems which widely exist in the Chinese audit market. Firstly, Zhongtianqin’s auditor failure was caused by the auditor’s lack of knowledge of the Yinguangxia’s business. Zhongtianqin’s auditors are lacking in knowledge of the international regulations and rules of foreign trade.
In order to perform an effective and efficient audit it is essential that the auditor gains a thorough understanding of the client (its organization,
strategy, key personnel, etc), its business, its business processes and risks, and its industry. SAS 210: Knowledge of the business states:
Auditor should have or should obtain a knowledge of the business of the entity to be audited which is sufficient to enable them to identify and under
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