Audit and Assurance Services

3085 Words12 Pages
Title: Audit & Assurance services Introduction Advance in technology, globalization and internationalization are affecting the method organizations are conducting businesses in the contemporary business environment. Changes in the method that organizations employ in conducting business also increase the danger of fraudulent financial reporting. Financial failures and high profile scandals within business environment between 2000 and 2002 have necessitated market regulators to call for scrutiny in the corporate financial reporting in the United States. The occurrence of fraudulent practices within business environment made the stakeholders to call for risk management, governance as well as increase in the scrutiny and quality in auditing and assurance. Following the WorldCom and Euron's fraud scandals that eroded the confidence of investors in the United States, the government focuses on the impact of external auditing practice on the quality of financial reporting. In 2001, Euron Corporation filed for bankruptcy with $62 billion worth of assets. The downfall of Euron made thousands of employees to lose their jobs making thousands of shareholders to lose their money. In 2002, WorldCom also filed for bankruptcy with $100 billion worth asset making Euron case appear small in comparison. High profile scandals that swept across the United States between 2001 and 2002 have shown that quality-auditing practice is very critical for the quality accounting and financial reporting.
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