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    Addis Abeba University Ccollege of Commerce 111

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    1. The document discusses the key differences between accounting and auditing. It asks the student to explain the differences based on attributes like objectives, functions, scope of services, responsibilities, reports generated, level of care required, and nature of practitioners' employment. 2. It discusses how the audit profession is under fire due to lawsuits and asks the student to identify 3 possible mitigating actions that could be taken by various actors like governments, regulators, professional bodies, firms, auditors, and clients to address issues like expectation gaps. 3. It asks questions about auditing independence, what it means, when it is required, who needs to be independent, from whom, and threats that could

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    Addis Abeba University Ccollege of Commerce 111

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    Unanimous Client
    13 views2 pages
    1. The document discusses the key differences between accounting and auditing. It asks the student to explain the differences based on attributes like objectives, functions, scope of services, responsibilities, reports generated, level of care required, and nature of practitioners' employment. 2. It discusses how the audit profession is under fire due to lawsuits and asks the student to identify 3 possible mitigating actions that could be taken by various actors like governments, regulators, professional bodies, firms, auditors, and clients to address issues like expectation gaps. 3. It asks questions about auditing independence, what it means, when it is required, who needs to be independent, from whom, and threats that could

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    ADDIS ABEBA UNIVERSITY CCOLLEGE OF COMMERCE 111

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    1. The document discusses the key differences between accounting and auditing. It asks the student to explain the differences based on attributes like objectives, functions, scope of services, responsibilities, reports generated, level of care required, and nature of practitioners' employment. 2. It discusses how the audit profession is under fire due to lawsuits and asks the student to identify 3 possible mitigating actions that could be taken by various actors like governments, regulators, professional bodies, firms, auditors, and clients to address issues like expectation gaps. 3. It asks questions about auditing independence, what it means, when it is required, who needs to be independent, from whom, and threats that could

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    13 views2 pages

    Addis Abeba University Ccollege of Commerce 111

    Uploaded by

    Unanimous Client
    1. The document discusses the key differences between accounting and auditing. It asks the student to explain the differences based on attributes like objectives, functions, scope of services, responsibilities, reports generated, level of care required, and nature of practitioners' employment. 2. It discusses how the audit profession is under fire due to lawsuits and asks the student to identify 3 possible mitigating actions that could be taken by various actors like governments, regulators, professional bodies, firms, auditors, and clients to address issues like expectation gaps. 3. It asks questions about auditing independence, what it means, when it is required, who needs to be independent, from whom, and threats that could

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    Download as docx, pdf, or txt
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    ADDIS ABEBA UNIVERSITY

    COLLEGE OF BUSINESS & ECONOMICS, SCHOOL OF COMMERCE.

    ADDIS ABEBA

    NAME----------------------------------------------------------------I.D.NUMBER----------------SECTION-----------------

    PART II.ANALYSIS & INTERPRETATIONS OF AUDITING PRINCIPLES, CONCEPTS & AXIOMS.

    1. There is a confusion as to the difference between accounting &auditing even in the financial
    community circles let alone the common lay persons, as AUDITING is given to accounting
    students in the department of accounting by accountinginstructors. However, accounting &
    auditing are two separate disciplines with unrelated foundations, bases & origins etc.(MAUTZ &
    SHARAF the fathers of auditing Philosophy 1961.)
    Here below you are required to explain the areas of differences between auditing & accounting
    using the following attributes or best acts of the accountancy profession:
    a. Fundamental objectives
    b. Critical function
    c. Scope of services
    d. Interest served
    e. Responsibilities
    f. Authorities or framework
    g. Legality of services in Ethiopia
    h. Timing of services provided.
    i. Reports generated
    j. Focuses of services
    k. Level of professional due care &diligence required.
    l. Practitioners/Professionals/
    1. Nature of employment
    2. Rights & duties
    3. Competences, capabilities & capacities
    4. Remunerations & benefits
    5. Tenure of employment or Job security.
    2. More than any time else in the past the ACCOUNTANCY PROFESSION –AUDITING & ASSURANCE
    ATTEST FUNCTION IS UNDER FIRE i.e. Viral litigations, spiral legal losses & embarrassments &
    finally a big “?” to the sustainability of the attest service in the profession.However, this service
    is ‘with the highest acceptance momentum in the global financial community’ for their day to
    day Business Model Decisions. The world financial community members are responsible for
    “saving our souls” of the attest service & Narrowing the Expectation Gap i.e. performance gap,
    liability gap & standards gap. Indeed as potential member of the financial community, identify
    the mitigating actions or strategies required from each of the following critical actors such as:(at
    least identify 3 possible mitigating actions from each actor).
    a. Governments (i.e. any level of federal, state &local).
    b. Legal & governance system
    c. Accounting & auditing regulating body like AABE.
    d. Accountancy profession-Global like IFAC.
    e. Accountancy Profession–local such as EPAAA.
    f. Academic institutions, universities, & colleges etc.
    g. Audit firms
    h. Individual auditors.
    i. Clients/Auditees.
    j. The Society at large.
    3. A judge cannot be a judge for himself “Aristotle statement on judgment, 2500 B.C.”
    Using the above fundamental statement related to auditing independence In fact & appearance
    universal principle requirement, answer &interprets the following questions:
    a. What is the essence or meaning of independence? Why is it critically important to auditing?
    b. When are auditors required to be independent? (i.e. programming, performance &
    reporting independence interpret it)
    c. Who are expected to be independent?
    d. From whom are auditors expected to be independent?
    e. Identify at least 10 transactions, interests &relationships or threats that are likely to affect
    independence in fact & appearance of the auditor.
    4. Even the best world class audit assignment has limitations. There is no absolute assurance. Here
    you are required to differentiate between the different levels of assurances provided by public
    accountants.(HINT: absolute, High, moderate & Zero levels assurances). By the way what are the
    inherent limitations of Auditing?
    5. Accountancy is a profession like the old professions such as medicine, law, theology &
    architects/engineering. What are the admission criteria or Hall Marks of the accountancy
    profession achieved over recent years like other professions & Public accountancy is not an
    exception to the Golden rule?

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