AUDITING

Current Issues in the Regulation of the Role of Auditor

Table of Contents

Introduction1

Defining the Role of an Auditor1

Using Evidence3

Developing the Argument3

Critical Evaluation5

Issues of Resistance5

Problems of Friction6

Problems arising from "Doing Too Much Too Soon"6

Analysis Structuring6

References8

Current Issues in the Regulation of the Role of Auditor

Introduction

An auditor is an independent third party, who examines the evidence of adherence of some practice to a set of norms or standards in a systematic manner, for that practice and issues a professional opinion. While auditing remains a key function in the area of organizational monitoring and control, it is also a risky affair that can lead to certain issues. The challenges of compliance with new requirements of organization-wide communication, reporting and certification, affect everyone at different levels, whether public or business governments. With respect to entities subjected to the requirements of compliance, auditing is one of the functions of an entity's more greatly affected by these new rules (Neuendorf, 2001, 34-78).

Although a third party of an auditing team remains unbiased to the organizational functions, he has no interest in the affairs of the company. At the same time, some supervisory committees or individual members also have to keep a watch on the roles performed by the auditor. In this context, it is difficult to assess whether the practices of the auditor is in line with the standards and legislation (Ramsey, 2007, 236-240). There is certain legislation that are formulated to address the issues of regulation in the role of an auditor, and here we will discuss not only those issues, but the mechanisms and interventions developed to address those issues.

Defining the Role of an Auditor

Depending on the needs of an entity and its budget, the time it must respect and other related factors, internal auditors can take various roles in the certification process and accountability of entity. This certification process is sometimes required by the authorities of financial markets but it may also arise as part of privacy laws on public administration. Here is an overview of the key roles that can be played (Glover, 1997, 213-226).

Traditional role

The smaller the role these internal auditors can play, the more it brings down to their traditional functions to monitor compliance activities and to report on performance management. While this is one of the options, this is not necessarily the most appropriate, since the entity then forgoes expertise in internal controls of Internal Auditors. Therefore, it is often wise to address the internal audit facilitate the certification process (Lin, Fraser, 2003, 153-168).

Active Participation And Role

As part of the certification process, internal auditors can take an active role in providing advice about a wide range of subjects in order to add value to the certification process of the entity, including:

Liaising between the external auditors and management;

Facilitating the development and training of management personnel involved in the documentation and testing related to the certificate;

By performing reviews of the quality of documentation and testing;

Conducting ongoing monitoring (design, scope and frequency) testing and corrective ...