Question

Discuss your professional and legal responsibilities as an auditor by referring to the Statement of Auditing Standards (SAS) as well as the Public Company Accounting Oversight Board (PCAOB) rules. In addition, discuss how some of the rules have changed since these large frauds have occurred.

Answer 1

Professional and legal responsibilities as an auditor- Are as following:

1. Planning and performing audit process with due care.
2. Collecting, analyzing and evaluating the financial statements and other documents by taking into consideration "accounting principles and laws".
3. Making auditor's report that is easy to understand and crystal clear.
4. Obtaining reasonable assurance that all the financial statements are free from misstatements.
5. Performing an audit that is free from error and fraud.
6. Marinating confidence of company's management and public.

Some of the rules and laws have changed as many fraud have occurred in the past. Now Independent auditor takes the audit process and perform it, he is independent from the company's management and people and does not have any interest in company. He charges his fee only. He provides independent opinion in auditor's report, he collects audit evidences so that they may be no chance of fraud, error or misstatement. PCAOB ahs made "Code of Ethics" in auditing process, ethics are the values and principles that each and every auditor has to follow.