Should International Audit Statement Standards be more Rigid?

Level: Undergraduate | Grade: 2.2 | Approx. Word Count: 1,050

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Overview

The spate of corporate collapses over the past few decades have given rise to a debate over the quality and content of International Standards for auditor statements. This essay examins some of the core issues related to this debate.

The role of an auditor is to carry out an examination and investigation into the corporate financial reporting process (Gray and Manson 2011). The purpose of this examination is to ensure that the information upon which the financial statements have been based, together with the internal financial controls of the corporation is accurate. Based on the outcome of their audit, international auditing standards (IASs) then require the auditor to attach a certificate to the financial statement, which should reflect their opinion as to whether these statements present a “true and fair view” of the corporation’s activities and financial performance during the period under review (APB[1][#_ftn1] 2009).