HOW to improve the work of audit firms, on which investors in public companies depend?
The S.E.C. is concerned that auditors not be in a position of auditing work done by their colleagues, fearing that the auditors would be reluctant to criticize such systems.
Therefore, it is necessary to study and innovate a new monitored mode to resolve the problem between huge oversee work and the shortage of auditing resource.
The same way as the strengthening of corporate governance mechanisms is effective on the quality of financial reporting (Kent and Stewart 2008), it seems that this issue, potentially affects the decisions and judgments of auditors in various stages of auditing work and vice versa.
We discuss the implications of these changes for the future of auditing, audit work and large audit firms.
The doctors were also asked whether and if so how they followed up their work and about their experience of auditing.
And the company will have to hire a lawyer -- selected by the Justice Department -- to oversee the work of the auditing firm.
The 2012 round of inspection covered in the new report looked at the work of 43 audit firms.
Investors could have a chance then of comparing the work of differing audit firms, as one firm disclosed it had checked something other auditors did not mention.
It provides guidance on everything from how to judge the independence of non-executive directors to directors' pay deals and the work of the audit committee.
