ACC614 Week 1 Discussion 1 Auditor as Guarantor

Hello class

Brian believes that the auditors were responsible for preparing the financial reports and that the firm auditors had a stake in their creation. The corporate managers typically prepare the financial statement for the shareholders (Oussama & Jamil, 2020). They rely on internally produced reports from the company, including the internal auditors' assessments. The managers, however, have the last word and are accountable for the veracity of the statement they have created (Nurlaela et al., 2021). Brian, therefore, holds the incorrect belief that the auditors have created the financial account.

Misconception

While auditors examine the reports to ensure widely accepted accounting principles prepare them. The auditor’s assessment that the statements are free of substantial misrepresentation is also shown in the qualified opinion. However, despite the auditor’s unqualified assessment, the investment is not certain to succeed because it also does not consider any management, financial, or industry-related factors that could affect the investment’s success.

References

Nurlaela, E., Mappanyukki, R., & Surjandari, D. A. (2021). The effect of the internal audit roles and auditor professionalism on fraud prevention. Studies in Media and Communication, 9(2). https://doi.org/10.11114/smc.v9i2.5324

Oussama, C., & Jamil, C. (2020). The role of internal auditors to implement IFRS9: Case of Lebanese banks. Journal of Economics and International Finance, 12(1). https://doi.org/10.5897/jeif2019.0998