Auditing Research Paper Example | Topics and Well Written Essays - 500 words - 1

Auditing - Research Paper Example This paper is a discussion of what the staff a company should expect auditors to do. The staff of a company should expect the auditors to engage in rendering an opinion of the company’s financial statement being presented fairly. The opinion is arrived at after gathering of appropriate and sufficient evidence and observation tests in accordance with GAAS. Sarbanes-Oxley Act section 302 states that the signing officers of the financial reports must review it first. According to the act also the signing officers are responsible for internal controls and must have evaluated them within the previous ninety days. This is in accordance to the financial reporting framework and all material aspects (Sarbanes-Oxley Act, 2002). The staff should expect the audit to provide information to investors and lenders that will boost the degree of confidence in the financial statements. Auditors have the responsibility of understanding and evaluating the internal control system. The staff in an organization should adopt sound accounting policies for establishing and maintaining internal control (Cangemi & Singleton, 2003). This will help to process and report transactions that are consistence with management assertions embodied in financial statements. As per the Sarbanes-Oxley Act section 401, the staffs are expected to publish accurate financial statements and present them in manner that is correct. The auditors are thus able to determine the practices established by the company are implemented as planned (Sarbanes-Oxley Act, 2002). Auditors are also responsible of observing the inventory count and performing analytical procedures on expected variances in accounting balances. Some of the procedures that auditors use are interviewing the leadership of an organization. This entails the senior management and the board of directors. The purpose of the interview is to ensure the top level management has an understanding