Auditing Theory and Practice Essay Example | Topics and Well Written Essays - 1500 words

Auditing Theory and Practice - Essay Example They also provide details of safeguards against them. If only threats to the ethics are explained and solutions to them are not given to auditors, then they will get frustrated in complying with the regulations. Safeguards are auditor friendly in the sense they provide them different course of actions in case of non-compliance. This helps the auditors to protect their commercial interest (Miettinen, 2008). The objective of the international auditing standards is to standardize the audit procedures on a global basis. This is as per the need of the time because multi-nationals are expanding. The concept of trans-national auditing has also increased. The International Auditing and Assurance Board have presented more than 25 Auditing standards. The standards cover the topic from the stage of selection of the audit client to the stage of the issuance of the Audit report. The standards cover risks and procedures to identify them. Now, IAASB has presented more clarified auditing standards. The standards provide their objectives, the requirement to fulfill the objective and application material to enhance the understanding of the users. IAASB calls for feedback from different accounting bodies, which enhance the acceptability and usage of the standards. The Standards setting body have discussed the factors of quality audit. Each factor that contributes to quality is then explained in much depth. For example, if the staff’s quality is of importance to the audit quality then the quality of the competent staff is explained further. Although, the framework does not provide an exhaustive checklist of factors, but it facilitates auditors to a reasonable extent. The professional bodies have enacted a system of audits of the audit firms for the audits they have conducted. The firms are then rated for their quality. High rating makes it more probable for the audit firms to be selected by huge clients. Such audits of