Audit Partner Rotation - Issue Brief In response to the wave of corporate crises, the Sarbanes-Oxley Act includes a provision regarding mandatory audit partner rotation for firms auditing public companies. This should not be confused with audit firm rotation and it is important to make the distinction. The Act requires the lead audit partner and audit review partner (or concurring reviewer) to be rotated every five years on all public company audits. The Act requires a concurring review of all
Mandatory Audit Partner Rotation, Audit Quality, and Market Perception: Evidence from Taiwan* WUCHUN CHI, National Chengchi University HUICHI HUANG, Syracuse University YICHUN LIAO, National Taiwan University HONG XIE, University of Kentucky 1. Introduction Mandatory audit partner rotation has existed in the United States since the 1970s, when the American Institute of Certified Public Accountants (AICPA) required that audit partners in charge of Securities and Exchange Commission (SEC) audits be
Auditor Rotation | Raising Auditor 's Independence | Proposed By: Varun Basantani | Auditor Rotation- Raising Auditor 's Independence ------------------------------------------------- Abstract: The question for mandatory audit rotation has been a concern to academics, investors, practitioners and the public at large. This paper is designed to determine the relationship between mandatory audit rotations and audit Independence. The paper makes an earnest effort to evaluate the need
The regulators establish principles and standards of the accounting profession, but the number of financial scandals continue increases due to the audit failure. The auditor independence is one of the important elements of quality audit. The independence safeguards auditor/client relationships, ensures fair disclosure, integrity and objectivity. The audit independence is a complex issue with threats to profession’s fundamental principles. The examples of Enron and Arthur Andersen, Ernst & Young and
CORPORATE GOVERNANCE ESSAY Can Corporate Governance Mechanism Prevent Corporate Fraud? Executive Summary This paper will reviews the extent to which corporate governance acts as efficient tool to protect investors against corporate fraud, thus contributing to summarize the literatures on role of corporate governance on preventing occurrence of corporate fraud. In a more recent study, corporate fraud is part of earnings manipulation done outside the law and standards. Whereas, the activities
THE FUTURE DIRECTIONS OF THE AUDIT PROFESSION Word Count: 1995 Executive Summary This report discusses the historical and current practices required by audit professionals. This is broken down into three main subject areas, being:- 1 The Monitoring of the Profession’s Quality Issue; 2 The Skills and Auditor Needs To Posses; and, 3 The Structure of an Audit and Non Audit Service Engagement. It is found from a comprehensive review of various literature available and previous studies
WorldCom, the number of demonstrated audit failures as evidenced by successful litigation or SEC sanctions approaches an annual failure rate of close to zero. In addition, our interpretation of the academic research suggests that many of the “solutions” embodied in SOX are not only unlikely to solve the profession’s alleged “problems,” they may well have serious unintended negative consequences. So the disconnect is large between the scientific evidence on audit quality and institutional changes premised
accounting profession Review questions 1.1 How does an expanded role of professional accountants affect the accounting profession? The expanded role of professional accountants has affected the accounting profession, in that new opportunities have been created for the profession to extend the range of services it offers to business organisations and the public. With the enhancements of technology, global transactions and competition between accountancy firms, professional accountants
Managerial Auditing Journal Emerald Article: Audit disaster futures: antidotes for the expectation gap? Fran M. Wolf, James A. Tackett, Gregory A. Claypool Article information: To cite this document: Fran M. Wolf, James A. Tackett, Gregory A. Claypool, (1999),"Audit disaster futures: antidotes for the expectation gap?", Managerial Auditing Journal, Vol. 14 Iss: 9 pp. 468 - 478 Permanent link to this document: http://dx.doi.org/10.1108/02686909910301556 Downloaded on: 04-12-2012 References: This
chi-square method. The study revealed that there is need for the audit of public enterprises in Nigeria; there is objectivity in the appointment of the external auditor for the audit of public enterprises in Nigeria; and that the independence of the auditor has a significant impact on the accountability disposition of Nigerian public enterprises. It was also found that provision of other services by the auditor as well as non-rotation of auditors are some of the strong factors, which may negatively