Essays24.com - Term Papers and Free Essays
Search

Mandatory Audit Rotation

Essay by   •  March 1, 2019  •  Thesis  •  6,480 Words (26 Pages)  •  449 Views

Essay Preview: Mandatory Audit Rotation

Report this essay
Page 1 of 26

[pic 1]

ANTON DE KOM UNIVERSITEIT VAN SURINAME

Faculteit der Maatschappijwetenschappen

Application of Mandatory Audit Rotation to financial audits in Suriname

Thesis for the acquisition of the Bachelor of Science degree in Economics

   

Name:            Gabriëlle A. H. Goedhart

Mentor:   Drs. Romeo Burgos RA

Paramaribo, September 2015

Preface

This thesis is written in order to complete my bachelor’s study Economy at the Anton De Kom University of Suriname. Writing this thesis required an extensive amount of focus and dedication.

My intention of becoming a Certified Public Accountant in the future has motivated the choice of my research subject: Mandatory Audit Rotation. During the qualitative research phase, the conducted interviews both with auditors and the companies they audit, proved to be very educational and presented me with the opportunity to hear unique views of the audit process in Suriname. As a result, I am excited and have a new found appreciation and drive for my future profession.

Drs. Romeo Burgos RA, my thesis mentor, thank you for the willingness to mentor me, the professional advice, time, contacts and support. Your unique approach to this study has made me enjoy it even more. Further, I thank Drs. Ashween Angnoe RA for his honesty and input and the willingness to co-mentor my thesis.

I want to thank the respondents who have participated in the interviews for their time and willingness to converse with me. An honorable mention goes out to Drs. R. Mayland RA and Drs. R. van Trikt RA for their honesty and openness pertaining to this subject and more.

Besides the professional help, I am thankful to my friends and family for the moral support. I want to thank my mother, especially, for her love, support, and encouraging words. Thank you for making sure I complete my bachelor’s study on a very solid note.

Foremost, I thank the Lord for giving me the strength, wisdom, patience and endurance to make it all possible.

Paramaribo, September 2015

Gabriëlle A. H. Goedhart


Table of Contents

Preface        1

List of Abbreviations        5

Introduction        6

General        6

Problem statement        7

Research question        7

1.        The auditor’s profession        8

The audit, the auditor and the audited        8

Basic principles of the auditor        9

2.        Mandatory Audit Rotation (MAR)        11

General        11

Mandatory Audit Rotation in practice        13

The auditing environment in Suriname        14

3.        Methodology        14

4.        Results        15

Auditor’s opinion on applying MAR in Suriname        15

Company’s opinion on introducing MAR in Suriname        15

My opinion on introducing MAR in Suriname        17

Conclusions & Recommendations        17

Conclusions        17

Recommendations        18

References        20

Books        20

Journals        20

Theses        23

List of Abbreviations

AA                        Accountant Administratieconsulent

ACCA                        Association of Chartered Certified Accountants

AFM                        Authority for Financial Markets

Audit         Financial statement audit is a periodic examination of the books of accounts and records of an entity, carried out by an independent third party (auditor)

CEO                        Chief Executive Officer

CFO                        Chief Financial Officer

CPA                        Certified Public Accountant

FRA                        Financial Reporting Act

GAAP                        Generally Accepted Accounting Principles

IFAC                        International Federation of Accountants

MAR                        Mandatory Audit Rotation

MFR                        Mandatory Audit firm Rotation

MPR                        Mandatory Audit partner Rotation

PCAOB        Public Company Accounting Oversight Board

PIE                        Public Interest Entity

RA                        Register Accountant

ROSC                        Report on the Observance of Standards and Codes

SUVA                        Surinaamse Vereniging van Accountants


Introduction

General

The recent accounting scandals in the United States have led society to question the quality of the financial audit. Financial statements form an important view of the financial position of an organization. It is therefore important that stakeholders and other interested parties have a trusted and fair view of the organization’s proceedings and financial operations. This is the reason auditors are important, they act as an independent third party and judge whether the financials represent a fair and true view of the organization’s financial position. During the financial scandals, certain auditors issued unqualified opinions, even though there were clear misrepresentations in the financial statements, for example Enron. This led society to doubt, not only the credibility of the company and its business, but also the independence of the external auditor.

...

...

Download as:   txt (41.1 Kb)   pdf (303.7 Kb)   docx (226.7 Kb)  
Continue for 25 more pages »
Only available on Essays24.com
Citation Generator

(2019, 03). Mandatory Audit Rotation. Essays24.com. Retrieved 03, 2019, from https://www.essays24.com/essay/Mandatory-Audit-Rotation/88708.html

"Mandatory Audit Rotation" Essays24.com. 03 2019. 2019. 03 2019 <https://www.essays24.com/essay/Mandatory-Audit-Rotation/88708.html>.

"Mandatory Audit Rotation." Essays24.com. Essays24.com, 03 2019. Web. 03 2019. <https://www.essays24.com/essay/Mandatory-Audit-Rotation/88708.html>.

"Mandatory Audit Rotation." Essays24.com. 03, 2019. Accessed 03, 2019. https://www.essays24.com/essay/Mandatory-Audit-Rotation/88708.html.