The Auditing Profession

pohtiongho By pohtiongho, 16th Jun 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/aa7zoawm/
Posted in Wikinut>News>Crime

Have you ever wondered why the companies keep the auditing firms for more than 50 years?

The auditing profession

Industry standards and legal frame works only appear on papers in most countries. If you are an honest CEO with nothing to hide, why are you afraid of the trade union? You should buy coffee for the union leaders and find out from them how they may help the company to do better. Many corporate elites are nervous when they face the small fries like the union leaders.
Every country must have a law asking companies to disclose the length of their relationship with auditors, as accounting firms can be too cozy with the companies they service, and thus collaborate with the clients.
During the last financial crisis, why were the accounting firms not able to highlight the problems in the banking sector? The four big accounting firms were: PwC; Deloitte; Ernst & Young; and KPMG.
It is obvious that hundreds of companies have been using the same auditor during the past 50 years. Are there so short of auditors? Is it for some reason that they need to stick to the same auditing firm for a very long period? Lengthy relationships could prevent an auditor’s ability to remain independent while doing his work. We are all humans.
There are companies which used the same auditor for more than 100 years. Isn’t this madness? Are others not able to do the job? To be on the safe side, your company should change auditor every ten years or even sooner.
Many investors are beginning to be concerned about the lengthy service these auditors have with the companies they service, and they begin to doubt if the auditor can remain neutral while doing his duty.
If you change your auditor every few years, you can avoid the cozy relationship which would lead to conflict of interest. Many investors actually don’t know how long those auditors have been in place. And of course the manager can always tell the investors that the length of time an auditor serves the company is a confidential issue.

Tags

Accounting, Auditor, Ceo, Deloitte, Ernest Young, Investors, Kmpg, Pwc

Meet the author

author avatar pohtiongho
I have been writing short stories, poems and articles during the past 20 years.
My other talents:
Pipeline fabrications and training of 6 G welders
Oil and gas, Maintenance Services

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Comments

author avatar Carol Roach
22nd Jun 2015 (#)

my boyfriend is an accountant and an auditor

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author avatar pohtiongho
22nd Jun 2015 (#)

Carol: Thanks for the feedback. I hope he is an honest one. Many of them receive kickbacks by helping the clients to cheat.

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author avatar gowritells
24th Jun 2015 (#)

Thanks for the share as I have no very little knowledge about this subject.

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author avatar gowritells
24th Jun 2015 (#)

I mean, I have very little knowledge about this subject.

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author avatar Md Rezaul Karim
26th Jun 2015 (#)

Auditing is a profession where people would show respect outwardly, but inside they don't like it..

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