Auditing Essay Example | Topics and Well Written Essays - 1750 words - 2

Auditing - Essay ExampleAs the report declares the evolution of auditing ethical standards has abdicated the powers governing ethical issues of objectivity from the institutes and placed it in the hands of the ASB, this doesnt seem to enough to properly control the behaviour of auditors in terms of objectivity and independence. In some cases, the Auditor becomes too financially dependent on the lymph gland that it cannot afford to give negative reports regarding the company for fear of losing his/her job. After all, good paying lymph glands are meet quite scarce nowadays. Other auditors are also providing very profitable advisory services to the client and even go to the extent of deciding for the company instead of merely advising the same.This discussion stresses that standards be destine and properly instituted through statutes to provide effective deterrent to potential violators. The low cost auditing services proves to be a major reason why most auditors are resorting to un ethical practices of the profession to augment their income. Standards control to be upgraded in terms of professional fees for auditors to prevent them from becoming too financially dependent to the clients. The finis rendered by the Court on the Caparo Industries plc v Dickman case, it if now very difficult to prosecute the auditor. Two viands of Civil Law can be used to sue auditors for breach of contract, where the client sues the auditor for well-favoured clean report which the client subsequently feels unjustified, and for tort which can be brought to court by anybody opposite than the client being audited for breaching their duty.