NCJ Number
67736
Journal
Internal Auditor Volume: 34 Issue: 2 Dated: (FEBRUARY 1977) Pages: 12-21
Date Published
1977
Length
10 pages
Annotation
THE TEXT OF A DIALOGUE CONCERNING AUDITORS' RESPONSIBILITY WAS HELD BETWEEN A REPRESENTATIVE OF THE INSTITUTE OF INTERNAL AUDITORS AND THE PAST PRESIDENT OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS.
Abstract
THE DISCUSSION COVERS TOPICS OF MUTUAL INTEREST AMONG INTERNAL AND EXTERNAL AUDITORS, SUCH AS THE CHANGING ROLES AND RESPONSIBILITIES OF AUDITORS, THE EFFECT OF TECHNOLOGY ON AUDITING, AND PEER GROUP REVIEW. IN ADDITION, THE INDEPENDENT COMMISSION ON AUDITORS' RESPONSIBILITIES IS DISCUSSED WITH FOCUS ON THE COMMISSION'S STUDY OF THE CONTROVERSY CONFRONTING CERTIFIED PUBLIC ACCOUNTANTS (CPAS) AND THEIR ROLE AS INDEPENDENT AUDITORS. SPECIFIC TOPICS RELATED TO THE COMMISSION'S STUDY ADDRESSED THE CONDITIONS PROMPTING THE UNDERTAKING (PUBLIC DOUBT OF CPA CREDIBILITY AND DISTRUST OF BIG BUSINESS) AND THE FACT THAT INTERNAL AUDITORS ARE NOT REPRESENTED ON THE COMMISSION. MATTERS OF COMMON INTEREST TO BOTH TYPES OF AUDITORS ARE THE GENERAL STANDARDS APPLICABLE TO THE WORK OF INTERNAL AUDITORS WHICH ARE BEING FORMULATED BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA). THE CONCEPT OF THE AUDITOR AS A POLICE OFFICER IS CRITICIZED AS INAPPROPRIATE TO THE CALLING AND FUNCTION OF AUDITORS. THE EFFECT OF COMPUTERS ON AUDITING IS ALSO ADDRESSED. OF CONCERN TO BOTH AUDITING PROFESSIONALS ARE THE HIGH RATES OF TURNOVER AND LACK OF INTEREST IN THE FIELD. THEY ALSO AGREE THAT THE INCREASING COMPLEXITY OF BUSINESS SYSTEMS WILL IN THE FUTURE REQUIRE FAR GREATER COOPERATION BETWEEN INTERNAL AUDITORS AND PUBLIC ACCOUNTANTS. IN PARTICULAR, THE REALM OF THE INTERNAL AUDITORS WILL EXPAND AS THEY BECOME INVOLVED WITH SYSTEMS DESIGN. ILLUSTRATIONS ARE GIVEN. (MRK)