Microsoft Word Comments on auditors rotation PCAOB 09.doc

Transcript

1 Dear Sir/Madame, I am a senior student at Rutgers University in Camden, New Jersey, and I have just that my understanding of class notes will help completed auditing course this semester. I belief me contribute positively to this debated topic; “Required Rotation of Auditors”. ocess will always be necessary, as accounting Efficient regulations to improve auditing pr frauds have led to loss of millions of dollars. A uditor’s knowledge of being replaced, in the near future, by another auditor from a different auditing firm will encourage the followings: 1- Independent of auditors will be maintained 2- Auditors will double their efforts to plan their field work and supervise properly 3- Due professional care will be adequately exercised 4- Proper procedure will be taking seriously to understand client’s internal control sufficiently 5- Expression of auditor’s opinion will be fair 6- Other Generally Accepted Auditing Standard will be followed The immediate effect of the rotating auditors will be the prevention of increase partnership companies, which, in turn, may strengthen relation between the audit firms and the client auditors’ ability to maintain a st atus of professional auditors. If the new proposed regulation, to rotate audito rs, is not well implemented, it will create a burden on auditing firms as well as client means to search for on auditors, where losing one another and start all over following every single procedures to pr event a lawsuit and other audit related inconveniences. These processes increase auditing costs and lead to client firm paying more in cash for auditing their firms. The increase costs will eventually be felt in prices of goods or services that client companies produce or offer to general public.

2 However, rotating auditors and auditing firms on periodic bases, at l east every four years, will help auditors become more independent and perform their duties effectively and efficiently. Sincerely yours Ousmane Kromah

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