This essay focuses on external auditor is independent. All material submit must be the student’s own work. Plagiarism or copying is a University serious assessment offence.
– This coursework replaces the in-class test – The coursework should be 1500 words long +/- 10%. Note the word limit guidance for each Task – Coursework constitutes 50% of the overall module mark – For each audit risk identified in TASK ONE you should describe its nature, using the audit risk model, explain its significance and provide a specific auditor’s response to the risk. – You should demonstrate evidence of wide research in the discussion of audit quality and usefulness in TASK TWO. You should cite cases of audit failure that are not more than10 years old and refer to recent developments in regulations and practice. Italian cases isn’t accepted. – You should clearly identify the sources you have used in obtaining evidence and appropriately reference these sources, using the Harvard style.
All material submit must be the student’s own work. Plagiarism or copying is a University serious assessment offence.
Performed by external organizations and third parties, external audits provide an unbiase opinion that internal auditors might not be able to give. External financial audits are utilize to determine any material misstatements or errors in a company’s financial statements.
When an auditor provides an unqualify opinion or clean opinion, it reflects that the auditor provides confidence that the financial statements are represent with accuracy and completeness.
The key difference between an external auditor and an internal auditor is that an external auditor is independent. It means that they are able to provide a more unbiased opinion rather than an internal auditor. Whose independence may be compromise due to the employer-employee relationship.
There are many well-establish accounting firms that typically complete external audits for various corporations. The most well-known are the Big Four – Deloitte, KPMG, Ernst & Young (EY), and PricewaterhouseCoopers (PwC).
These audits are not distribute outside the company. Instead, they are prepare for the use of management and other internal stakeholders.
Internal audits are use to improve decision-making within a company. By providing managers with actionable items to improve internal controls. They also ensure compliance with laws and regulations and maintain timely, fair, and accurate financial reporting.
Management teams can also utilize internal audits to identify flaws or inefficiencies. Within the company before allowing external auditors to review the financial statements.