On the Coexistence of Professionalism and Commercialism in CPA Firms

Vincent Love argued in the February 2015 issue of The CPA Journal that auditors' independence and professionalism is significantly challenged by the expansion of audit firms offering services beyond the traditional competencies of CPAs. The purpose of this article is to argue that the main chal...

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Veröffentlicht in:The CPA journal (1975) 2015-05, Vol.85 (5), p.10
1. Verfasser: Selling, Thomas I
Format: Artikel
Sprache:eng
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Zusammenfassung:Vincent Love argued in the February 2015 issue of The CPA Journal that auditors' independence and professionalism is significantly challenged by the expansion of audit firms offering services beyond the traditional competencies of CPAs. The purpose of this article is to argue that the main challenge to the profession lies within audit services themselves; specifically, the auditing of management's estimates. Instead of focusing on non-audit services, an accounting firm can balance its business interests and the public interest by focusing audits on the verification of facts. Estimates by management have become ubiquitous in accounting. They are embedded in the economic lives of buildings and machinery, the loan loss allowances of banks on debts of unstable governments, and practically everything else in between. The longstanding fundamental basis for the relationship between management's estimates and the audit engagement is currently set forth in the PCAOB's interim standards, AU section 342.03.
ISSN:0732-8435