Issues in Contemporary Auditing Essay Example | Topics and Well Written Essays - 3250 words

Issues in Contemporary Auditing - Essay Example The aspect of financial transaction record would be quite vital to be thoroughly examined in the process. It has been revealed that Hammerson plc upholds proper financial statement by following the guidelines of Companies Act 1985 which depicts true and fair values that facilitate the company to maintain accurate financial records. Additionally, an audit report of the company is also conducted by following the guidelines of the International Standard on Auditing (ISA) which is authorized by the International Auditing and Assurance Standards Board (IAASB). Moreover, while preparing an audit report, Hammerson also utilizes various financial transaction tests that facilitate it to identify the valuation of assets and liabilities which are essential to be considered. The Audit Committee should also note that Hammerson takes the responsibility for protecting the assets of the company along with safeguarding them from the hand of fraud, error, and non-compliance by adhering to the laws and regulations which are mentioned in Companies Act 1985 under Section 389(A). The company also provides other financial services under the Financial Services Act 1986. Compensation which will be due for the provided service to Hammerson can be calculated on the basis of the times which are spent by your partners and also on the basis of skills and responsibilities that are involved amid your staff. The scope of the audit will be to make a comprehensive evaluation of the books of account in order to ascertain the validity and reliability of the published materials of the company. Our company shall be highly obliged if you can confirm your agreement or engagement by singing and returning the enclosed copy of this letter. Thanks & Regards Yours faithfully Manager Loughran and Shrives Chartered Accountants B. Ethical Issues Leaflet Interdependence is one of the fundamental as well as considerable aspects while preparing an audit report. In order to maintain suitable ethical standards in an audit report, it is essential for the auditors to be independent in terms of mental attitude while dealing with their respective clients. The users of the financial statement are primarily concerned about the aspect that the auditors should not compromise with their interdependencies by considering the viewpoints of the clients during the preparation of an audit report. Truthfulness, honesty, integrity, confidentiality and professional behavior are the most essential aspects for the auditors in order to maintain ethical standards and also bring transparency while preparing an audit report. It is also necessary for the audit firms to maintain similar kinds of rules and regulations while preparing an audit report for their respective stakeholders.