scholarly journals Southwestern Federal Power System combined financial statements and supplemental schedules (with independent auditors` reports thereon) for the years ended September 30, 1996 and 1995

1997 ◽  
Author(s):  
Keyword(s):  
Power System ◽  
Financial Statements ◽  
Independent Auditors

The Influence of Earnings Quality for Restatements and Auditor’s Qualified Opinion

2020 ◽  
Vol 3 ◽  
pp. 53-68
Author(s):  
Adriano Antonio Siqueira ◽  
Fernando Caio Galdi
Keyword(s):  
Regulatory Agency ◽  
Earnings Quality ◽  
Financial Statements ◽  
Audit Report ◽  
Audit Firms ◽  
Independent Auditors

The objective of the present study was to raise the cases of restatements and to evaluate whether these events were associated with the low earnings quality and with the provision of advice with a qualified opinion by audit firms. The results obtained with the analysis indicate that the low earnings quality increases the chances of republishing the financial statements. Additionally, the results indicate that there is no evidence that lower earnings quality increases the chances of issuing a qualified audit report or disapproval of the financial statements by the independent auditors. These results point to a divergence regarding the understanding of earnings quality by the auditors and by the regulatory agency.

scholarly journals Key research issues – a new element in auditor reporting

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 79-94 ◽  
Author(s):  
Małgorzata Kutera
Keyword(s):  
Stock Exchange ◽  
Inductive Reasoning ◽  
Synthesis Method ◽  
Financial Statements ◽  
Total Sample ◽  
Consolidated Financial Statements ◽  
Research Issues ◽  
Independent Auditors ◽  
Auditor Reporting ◽  
Verification Techniques

Significant changes are being made to the way independent auditors report audit results. They are generally oriented towards the broader context in which the auditors worked to analyse their conclusions more effectively. What is particularly interesting in this context is the auditor's duty to present Key Audit Matters (KAMs) concerning areas of the highest risk. In light of the above, the purpose of this article is to present the extent to which changes have been implemented in independent auditors' reports from the audits of the financial statements of the largest companies on the Polish market and to identify both the key audit matters as well as the verification procedures applied by auditors. Auditors' opinions from the audits of consolidated financial statements of the 30 largest companies listed on the main market of the Warsaw Stock Exchange for the years 2014–2016 were analysed in detail. The total sample comprised 90 opinions. The research methodology consisted mainly of case studies, with deductive and inductive reasoning used to formulate conclusions based on the analysis and synthesis method. The results of this research indicate that some independent auditors have been implementing new elements of reporting on a current basis. An analysis of the contents of their opinions has shown that the auditors mainly include the estimates of asset impairment, the recognition of sales, the disclosure of claims, disputed matters and con-tingent liabilities as well as accounting for deferred income tax assets in Key Audit Matters. Auditors also give quite detailed reasons for selecting the specific KAM and the verification techniques used.

scholarly journals HOW DO INDEPENDENT AUDITORS DETECT FRAUDULENT FINANCIAL STATEMENTS?

2016 ◽  
Vol 1 (2) ◽  
pp. 301
Author(s):  
Theresia Laras Wigunani
Keyword(s):  
Financial Statements ◽  
Public Accounting ◽  
Audit Risk ◽  
Professional Skepticism ◽  
Accounting Firm ◽  
Audit Planning ◽  
Independent Auditors ◽  
Branch Office ◽  
Fraudulent Financial Statements ◽  
Participatory Observation

(Participatory Observation in Public Accounting Firm “X”) ABSTRACTIndependent auditors have audit risk making them unable to detect material misstatements, especially those caused by fraud. This is because fraud may involve sophisticated, organized, and carefully designed scheme to be covered from the auditors. In addition, the audit risk could also be influenced by the negligence of the auditors, such as the audit that is not according to auditing standard, having no professional skepticism, and the inadequacy of training and audit experience. The objective of the research is to analyze whether the independent auditors perform a good audit planningand have a professional skepticism and audit experience to be able to detect fraudulent financial statement in the company in order to obtain a reasonable assurance. This research uses qualitative approach using participatory observation on 1 object, Public Accounting Firm (KAP) “X”, the only big four-audit firm that has a branch office in Surabaya. The research findings indicate that the audit team performs good audit planning, has professional skepticism and audit experience, can detect fraudulent financial statements.

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