INTERNATIONAL REGULATORY ENVIRONMENT

International Regulatory Environment for the Auditing Profession



International Regulatory Environment for the Auditing Profession

Introduction

There have been many changes to the regulatory environment for the accountancy profession in current years as professional accountants, their customers, professional accountancy association, and governments attempt to assure that the profession extends to deliver high-quality services and leads to development and growth of the economy. A number of these modifications have been determined by professed shortcomings in regulatory placements, and debate preserves about the most favorable model for such regulation.

A distinctive feature of the auditing profession is the recognition and acceptance of the duties to act in the public interest. Therefore, the responsibility of the auditor is not limited exclusively meeting the needs of the individual client or employer. Acting in the public interest, the auditor shall comply with and be subject to professional ethics auditor (Bazerman et al, 2002).

The conditions under which an auditor can give rise to the threat of violation of fundamental principles. It is impossible to describe all situations in which there are such threats, and identify appropriate actions to address. In addition, the nature of the job (contract) can vary significantly from case to case and, therefore, you may experience a variety of threats, which respectively require different protective measures. Thus, a model that requires the auditor does not simply follow a given set of rules that can be challenged, and to identify, assess and respond to threats of violation of fundamental principles that serve the public interest. The code shows a model that has the purpose to help the auditor to identify, assess and respond to threats of violation of fundamental principles. If the detected threat is not clearly insignificant, the auditor shall, if appropriate, take precautionary measures to eliminate such threats or to reduce it to an acceptable level at which compliance with the basic principles are not in danger.

The distinctive feature of this profession is the recognition of its responsibility to society. With regard to the professional community of accountants society includes customers, creditors, government, employers, employees, investors, business and financial community, as well as others who rely on the objectivity and integrity of professional accountants to ensure the orderly conduct of business. Duties of a professional accountant can not be reduced solely to the needs of the individual client or employer (IAASB Consultation Paper, 2011).

Discussion

Current Regulatory Environment

Global regulatory convergence of the accountancy profession, including the adoption and implementation of high-quality ethical, technical, and professional standards, enhances the ability of capital markets to work globally, allows investments to move more efficiently across borders, and reduces the risks and uncertainties in capital markets. It assists in achieving a stated goal of the G-20, to strengthen transparency and accountability in the context of financial and capital markets, and creates a level playing field in the interpretation and exchange of financial information. IFAC recognizes that regulation of the accountancy profession is primarily conducted at a national level. Consistency in external regulation by government has been enhanced in recent ...