Video/film shows Sample Essay Paper.
Week 4 video shows how auditors whom the public trusts to ensure that assurance in the financial reporting are secured are themselves to be questioned about their independence, integrity, confidence, and objectivity.
The maker of the video questions about KMPG expected Obligations to the users of their reports and the character of the general audit profession. Should the public rely on the gatekeepers or there must be some continual regulations and monitoring to keep them on their toes.
In the video, a senior audit partner at one of the KMPG his offices had leaked inside trading information to one of his Golfing “buddies”. The bone of contention over the issue, resulted into breach of contract due to lack of trust, integrity, and independence.
If a high profile senior audit partner had involved himself in a high profile inside trading scandal, then all the auditing work he has supervised over years could not be relied upon, and therefore needed to be declared mistatements
According to this week’s objectives whenever, there is suspicion of misstatements, all the affected year financial statements need to undergo “restatement” to ensure that they could be relied upon. And this include corrections of errors in published financial statements unintentional mistakes in the application of GAAP, IFRS or foreign Accounting Principles, which most financial statements fall into; and financial fraud that leads to unintentional manipulation of data or by misappropriation of assets.
Accountants and Auditors should always ensure that, their works are maintaining stakeholders confidence and trust besides that they are nothing at all.
Ref. Mintz R. & Morris S. (2017). Ethical Obligations and Decision Making in Accounting. McGraw Hill. New York. N Y