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Posted: September 1st, 2023
In recent years, the advancement in technology has led some to argue that these technologies may help in improving audit quality.
For Former Australian Securities and Investments Commission (ASIC) chairman Greg Medcraft, “audit quality has been a concern for a number of years now”.
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https://www.forbes.com/sites/insights-kpmg/2019/03/04/how-advanced-technologies-may-improve-audit-quality/#511282375632
https://www.abc.net.au/news/2019-08-06/audit-firm-failures-could-spark-enron-style-collapse-medcraft/11388164
https://www.afr.com/politics/federal/asic-to-name-and-shame-big-four-consulting-firms-over-audit-quality-20190806-p52efr
https://www.pwc.com.au/press-room/2019/pwc-releases-balanced-scorecard.html
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Required:
Discuss the issues raised over audit quality in the above excerpts. You also need to consider the way in which the *Restructured Code of Ethics may help in providing quality audits that serve public interest.
*https://www.ifac.org/global-knowledge-gateway/ethics/discussion/how-new-ethics-code-will-affect-your-standards
You need to support your discussion with suitable examples and relevant cases – both recent and past.
Important: In developing your viewpoint, you need to examine the issues raised in the following material. These materials are a good starting point. They include:
• Your textbook.
• https://www.ey.com/en_gl/assurance/how-artificial-intelligence-will-transform-the-audit
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• Sikka, P., Filling, S.,Liew, P. (2009) "The audit crunch: reforming auditing", Managerial Auditing Journal, Vol. 24 No.2, pp.135 – 155.
• Sikka, P. (2009). Financial crisis and the silence of the auditors. Accounting, Organizations and Society, Vol. 34(6-7), pp. 868-873.
To appreciate the multiple pressures on accountants and auditors, see: Helliar, C., & Bebbington, K. J. (2004). Taking Ethics to Heart. Institute of Chartered Accountants of Scotland.
Please note: while the above reference is 15 years old and UK-based, the issues remain relevant in the Australian context.
Please note the following:
• Required format: Essay (Around 2 500 words)
• The assignment is to comply with the University’s General Guide to Writing and Study Skills, General Guide to Referencing, and Assignment Layout and Appearance Guidelines.
• Useful links:
• http://federation.edu.au/__data/assets/pdf_file/0018/190044/General-Guide-to-Writing-and-Study-Skills.pdf
https://federation.edu.au/__data/assets/pdf_file/0020/313328/FedUni-General-Guide-to-Referencing-2016ed.pdf
https://federation.edu.au/__data/assets/pdf_file/0017/190043/General-Guide-to-Layout-and-Appearance.pdf
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