AUDIT TENURE AND ITS IMPACT ON AUDITORS’ INDEPENDENCE Dissertation Example For Download

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Category: Accounting
Subcategory: Business
Level: College
Pages: 4
Words: 1100
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INTRODUCTION. Listed companies are required by the Law to undertake audits annually to ascertain the correctness of financial reporting of the companies. To be compliant to this regulations, listed companies hire and enter into engagements with audit firms to conduct audits as well as offering independent and professional opinions to the stakeholders of the listed companies during their annual general meetings (AGM). During these auditing engagement periods, auditors are guided by independence, objectivity, and professionalism to conduct audits and serve reasonable assurance that financial statements are free from material errors. A breach of auditors’ independence, objectivity and professionalism may lead to incorrect opinions about the financial reporting of the companies in turn affecting operation efficiency and effectiveness of capital markets. AUDIT TENURE From an ethical point of view, auditor tenure is defined as the longevity of the affiliation between the auditors and the a...

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