{"product_id":"the-oversight-of-the-audit-profession-supervising-a-supervisor-von-ecaterina-volosin","title":"The oversight of the audit profession","description":"\u003cp\u003eSeminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,0, University of Glamorgan (Business School), course: International Accounting \u0026amp; Audit, language: English, abstract: This paper provides an overview of the current regulatory frameworks for financial reporting\u003c\/p\u003e\u003cp\u003eand auditing in the UK, US and Germany. During the last years these frameworks were\u003c\/p\u003e\u003cp\u003enoticeably changed. These changes arose especially from political interest in accounting\u003c\/p\u003e\u003cp\u003eregulation following the Enron collapse. The main change in the US was the introduction of\u003c\/p\u003e\u003cp\u003ethe Sarbanes-Oxley Act containing strict regulations for auditors, including their\u003c\/p\u003e\u003cp\u003eresponsibilities and services. It also contains a list of prohibited audit activities, the so-called\u003c\/p\u003e\u003cp\u003e¿non-audit¿ services. The main feature of the Act was the creation of an oversight board to\u003c\/p\u003e\u003cp\u003eregulate and control auditors of public companies. Thus the ¿Public Company Accounting\u003c\/p\u003e\u003cp\u003eOversight Board¿ was established. The PCAOB is a private-sector non-profit overseer,\u003c\/p\u003e\u003cp\u003esupervised by the US Securities Exchange Commission (SEC) which regulates basically\u003c\/p\u003e\u003cp\u003eanything related to the securities market.\u003c\/p\u003e\u003cp\u003eFollowing the collapse of Enron and the turbulence in the UK markets that followed, a review\u003c\/p\u003e\u003cp\u003eof financial regulation in the UK was ordered, covering for example auditor independence,\u003c\/p\u003e\u003cp\u003ecorporate governance, financial reporting and auditing standards and accountability of audit\u003c\/p\u003e\u003cp\u003efirms. In order to restore credibility in UK accounting the Financial Reporting Council (FRC),\u003c\/p\u003e\u003cp\u003ean independent private sector body funded by the accountancy profession, was set up. The\u003c\/p\u003e\u003cp\u003eFRC has several subsidiary bodies, including the Professional Oversight Board (POB)\u003c\/p\u003e\u003cp\u003eproviding independent oversight of the regulation of the auditing profession.\u003c\/p\u003e\u003cp\u003eThe German Auditor Oversight Commission (AOC) was established according to the Auditor\u003c\/p\u003e\u003cp\u003eOversight Law. It is in charge of the public oversight of all activities of the German Chamber\u003c\/p\u003e\u003cp\u003eof Public Accountants (WPK) with respect to statutory auditors. The Commission has the\u003c\/p\u003e\u003cp\u003eultimate responsibility in the areas of licensing, registration, disciplinary investigations and\u003c\/p\u003e\u003cp\u003equality assurance, all with respect to members of WPK entitled to provide statutory audit\u003c\/p\u003e\u003cp\u003eservices (WPK, n.d.).\u003c\/p\u003e\u003cp\u003eIt is argued that these new regulations impose another layer of bureaucracy with significant\u003c\/p\u003e\u003cp\u003ecosts for very little apparent gain. But ethical issues surrounding the public¿s perception of\u003c\/p\u003e\u003cp\u003eauditor performance need to be addressed, not just for the sake of the profession, but for the\u003c\/p\u003e\u003cp\u003eefficiency and effectiveness of capital markets in general (Malthus and Scoble, 2005).\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783640192304\"\u003e\u003ch3\u003eSupervising a supervisor\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783640192304","offer_id":39440849502301,"sku":"9783640192304","price":17.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/aedd89c4-6d7d-4182-80e0-0d0f4f1a9eb9.jpg?v=1777615805","url":"https:\/\/shop.autorenwelt.de\/products\/the-oversight-of-the-audit-profession-supervising-a-supervisor-von-ecaterina-volosin","provider":"Autorenwelt Shop","version":"1.0","type":"link"}