Auditors’ response since Enron

Auditors’ response since Enron

Auditors’ response since Enron

Auditors’ response since Enron
Auditors’ response since Enron

The auditors and users were fully aware of the Enron scandal as a result of the level of publicity in the media. Auditors’ awareness of fraud have been heightened since Enron’s debacle. There appeared to be strong agreement among auditors (mean ¼ 5:00) that auditing in Barbados has improved since Enron compared to the users perception (mean ¼ 3.83). This was found to be statistically significant (t ¼ 4:897, df ¼ 23, p , 0:001). Further questioning revealed that the profession in Barbados has responded well by providing continuing professional education for its members. ICAB has been holding many seminars to address these and other issues, by making it mandatory for members to attend them or fear non-renewal of practising certificates. The large audit firms have provided more training in fraud-detection techniques and planning audits with a view to detecting fraud, as the fear of a subsequent discovery of fraud after issuing a clean audit report could affect the firm’s reputation and finances through lawsuits. The smaller firms are spending more time in conducting the audits to ensure greater accuracy. The profession has now become more cognisant of its responsibility to restore faith, not withstanding its staunch position that fraud detection is management’s responsibility. More due diligence work is now being done to eliminate potentially high-risk audit clients. As a result, clients are being carefully screened at the acceptance stage. More internal peer review processes are being implemented in the large firms to determine whether audits have achieved their objectives. Users have also acknowledged that there seems to be increased auditing procedures being performed.
A total of 89.5 per cent of the auditors and 41.7 per cent of the users (including those who had accounting knowledge) knew about the Sarbanes-Oxley Act in the USA. The auditors who knew more about the Act were from the major audit firms who audited the large public limited companies and offshore companies that could be affected by the Act, given the Securities Exchange Commission’s (SEC’s) requirements for all US companies. The users had heard about the Act but could not recall any specifics.

Sumber : https://student.blog.dinus.ac.id/blogtekno/seva-mobil-bekas/