Exposure of the Accounting Profession to Increasing Liability

1701 Words Apr 23rd, 2011 7 Pages
|Francis Marion University |
|Exposure of the Accounting Profession To Increasing Liability |
|Response of the Profession |
| |
| Kim Taylor |
…show more content…
The purpose of this endeavor was to examine the current status of the accounting profession, envision a more favorable future situation, and then determine the necessary strategy to follow in attaining this.

The consensus of the committee was that the expectations from audits were too high. They went on to elaborate on the lack of precision and exactness of financial statements and that the public was demanding a degree of certainty in their audits that could not be achieved. This has historically been labeled the “expectations gap”

They concluded that although auditors were not totally responsible for the scandals in 2000 and beyond, “all too many independent auditors lost their autonomy and judgment- and ended by blurring the line between right and wrong.” They described the audit as becoming a “commodity with little intrinsic value,” used to facilitate management’s objective of releasing misleading financial statements. , and concluded that accounting self-regulation had failed in these instances.

They also expressed concern about auditing practices of the Big Four. They said that firms such as these fail to effectively use their resources since experienced auditors often are not on the job site where they are most needed to detect
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