Audit Quality Essay Example | Topics and Well Written Essays - 2500 words

Audit Quality - Essay Example The auditors are looked upon by the readers of the financial statements to give assurance that the data presented are free from MATERIAL errors or irregularities. The readers of the financial statements need the financial statements in order to help them in their decision making. At present, auditors are held liable for fault due to negligence or incompetence doing audit work. Also together with regulation and reputation liability acts as a discipline on audit quality in a context where shareholders and other third parties rely on financial information that is audited and paid for by the company audit( Dipiazza, 2000) client. A good example is the Enron case. The audit staff of Arthur Andersen was charged for being negligent in performance of the audit function. Arthur Andersen has now been relegated to the side walk while the remaining big four have remained walking in the major highways handling the major and juice clients of the entire United States and overseas. ISA 240 Fraud and Error. This auditing standard explains the procedures in the audit of Fraud (Zea, 2002) and Error. This audit standard also tells the penalties, especially criminal offenses like being jailed, for gross negligence in auditing the clients' financial statements. Fraud is defined as intentional misstatement either by the company employee (who steals money or property and conceals the errors) or the management itself. The management sometimes does this fraud in order to present a better picture of what the company is in reality. This is what we call, in the accounting parlance, as window dressing. ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements This auditing standard specifically instructs the auditors to determine if any laws have been violated by the false information presented in the financial statements. One such law of the land is the Income Tax Law, The Property Law, and the Contract law. ISA 220 Quality Control for Audit Engagements. Quality control of engagements means that each engagement must be done with real professionalism. Professionalism means that all auditing standards and auditing procedures must be followed whenever practical or possible. There must be a constant evaluation of audit performance ob all audit team member so that recommendations and corrections can be implemented so that the next engagement will be better and faster than the prior one. Quality audit means that all audit procedures are made to ensure gathering all relevant and material data as soon as possible. IAPS 1010 The Consideation of Environmental Matters in the Audit of FinancialStatements. One audit procedure in environmental audit is to see to it that no environmental laws have been vi

Tort Law Essay Example | Topics and Well Written Essays - 2000 words - 1

Tort Law - Essay Example In essence, tort law is applicable in circumstances where an individual’s or a group’s negligence, carelessness, and/or failure to take precautionary actions results in other parties’ to incurring pain, losses, discomfort, harm, incapacitation and/or death3. Although they may cause losses and pain to their victims and their loved ones, it should be clear from the onset that not all tort cases are criminal acts. It is therefore imperative that the victim of another’s negligence or carelessness seeks compensation for the loss or pain suffered. In case a victim dies, his/her loved ones or beneficiaries should follow up with the justice system for compensation. An example of a tort case law in the UK is the Hughes versus Lord Advocate of 1963. In this case, workmen from the Post Office had gone for a 5pm tea break leaving an open but protected manhole on Russell Road unattended. A ten-year old child walking on the road with his uncle meddled with the manhole a nd the equipment. He even went down the manhole. On coming out, the appellant tripped and the lamp fell back into the manhole. Its fuel leaked and it exploded making the child to sustain rather serious injuries. The tort case was thus formed on the basis of negligence by the Post Office employees who left the site unattended despite the dangers it posed to the public. Among the issues that came up in the case was whether the accident was foreseeable in nature and if it occurred due to the Post Office employees’ negligence. To properly follow up and be compensated for the losses and pain suffered, tort victims and any other parties ought to know their rights and liabilities. One of the rights of victims of tort is entitlement to receive financial damages from those responsible. Among the accidents for which damages may be paid once categorized as legal injuries include physical and emotional injuries, reputation damages, violation of privacy, constitutional rights violation an d economic injuries that affect a person’s economic stability4. This paper advises parties to an accident scene on their rights and liabilities in tort by apportioning liabilities and identifying predictability, proximity, negligence, liability and reasonability. The Liabilities First and foremost, it is vital that the basic principles and implication of tort lawsuits is known. In such a lawsuit, the appellant or the victim of a loss or harm seeks to make someone else responsible for the problem at hand. Thus, tort is a civil lawsuit in which the victim, who prosecutes instead of the state, seeks not for the defendant to be imprisoned but to be forced to compensate for the loss or injury suffered5. Therefore, tort lawsuits are unlike criminal lawsuits in which are prosecuted by the state and the defendant is punished. Instead, the judgment is in form of a liability, mainly financial payments. That is, all the legally-recognized costs suffered by the victim or his/her families are shifted to the defendant if the latter is found liable. Besides, financial liabilities, defendants may be barred by a court of law from interfering with the plaintiff’s life or wellbeing6. Thus, in some instances, a plaintiff could be awarded disciplinary damages besides the compensation given. However, the plaintiff only stands to be compensated only if the defendant has a legal duty