Question

What other suggestions do you have related to avoiding audit failure?

Answer 1

The failure in audit occurs when issues a wrong audit opinion because it failed to comply with the auditing standards requirements. In my opinion it often occurs when internal accounting systems may have been inadequate; the rules on disclosure may have had loopholes that did not needed all practices to be disclosed, oversight of auditor, the auditor gets convinced by the client to permit questionable practices on reporting to keep their auditing fee, and ethics. They also act as cahoots with few entities in fraud perpetration on their employees, lenders, stockholders, and the public. In order to avoid these causes the auditor should be more rigorous systems of internal control and reporting of financial transactions, and entities must have also disclosed when there is a conflict of interest. If there were if they were to report any type of embezzlement or fraud must be taken into consideration. The audit team should hold good knowledge with a good experience. A complete risk assessment is a must; and all the discussed reasons of failure need to be avoided.