Need to select any two questions and write response in 1000 words count total
Question 1:
The origin of auditing goes back to times scarcely less remote than that of accounting Whenever the advance of civilization brought about the necessity of one man being entrusted to some extent with the property of another the advisability of some kind of check upon the fidelity of the former would become apparent.
Discuss in terms of how the principal-agent conflict depicted in agency theory, where principals lack reasons to trust their agents because of information asymmetries and differing motives, is critical to understanding the development of the audit over the centuries as well as its usefulness and purpose
Question 2:
Describe the lessons learnt by auditors in the aftermath of recent audit failures.
Question 3:
The history of ‘whistle-blowers'reveals few to have been auditors. Why is this so?
Question 4:
Discuss the terms of sufficient and appropriate audit evidence.
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The solution file contains solution for Question 1 and Question 3.