Question

Discuss the advantages and disadvantages of auditing standards to auditors and the consequences of them being enforceable by statute

Answer 1

The advantages and disadvantages of auditing standard to auditors are as follows

Advantages:

1) An Auditing provides a framework for an audit through which audits are developed.

2) The standardisation of the auditing helps to achieve the common goal of the auditors of producing the opinion

3) If there is any dispute with the auditors it helps the auditors in the audit work required

4) It also helps in the interpretation of court in case of due professionla care and defends the auditors work

5) It provides an awareness among the public regarding what the audit si and how an opinion is produced by the auditors

Disadvantages:

1) The Auditing standards are the standards which are stifle to the initiatives and developments of the new auditing methods.

2) It requires an unnecessary work which increases the cost and raises the fees in small companies

3) There may be having a negative effect instead of assisting the professional judgement.

Consequences of them being enforceable by statute:

If the auditing standards are enforceable by the statuute it means that the things which are solely controlley by the auditors will be intervened bu the government to follow the rules. In order to be enforceable the auditing standards should be made applicable in all circumstances for which it is to be made in a broad sense. This will reduce the slef role of the auditors. The auditors will spend unnecesary time in complying the things according to the law rather than gving a quality service to its clients. so, the full backing for statutory standards will lead to the narrow view of the auditors reducing the quality of accounting and auditing services.