Final exercise
Over to you Please download the exercise template found at the end of this step. On a seperate tab use the information to prepare a Statement of Cash Flows for …
Course: Accounting for Today’s Dynamic World
The Role of Organisations in Promoting Sustainability
What is the Role of Organisations in Promoting Sustainability? Big organisations such as multinational corporations have a significant impact on the economies, societies, and natural environments in which they operate …
The Three Stages in Sustainability
There is no global consensus on what is sustainability or what constitutes sustainable development! But we do have an understanding of the three stages of sustainability. Unsustainable – Current growth …
The Brundtland Report – 1987
The Brundtland Report (1987) – Definition The Brundtland Report (1987) defines sustainable development as “development that meets the needs of the present without comprising the ability of future generations to …
What is sustainability?
What is sustainability? The world faces a range of complex inter-related social, environmental and economic challenges! Examples (NOT an exhaustive list): Global warming & climate change (or climate chaos) Labour …
Closing the expectation gap in audit
This will be the last step in our AEG exploration. Take a moment to read this article Everyone closely connected to the audit profession, from regulators to the general public, …
Research exercise
Take some time to review the following video This is an additional video, hosted on YouTube. If the video isn’t working please use this link Over to you Identify a …
Key Audit Matters
Key Audit Matters International Standard on Auditing 701 (ISA 701): Requires auditors of publicly listed companies to include in their audit report a section on Key Audit Matters (KAM). Matters …
Expanded or long-form audit report
Expanded or long-form audit report Require auditors to provide an expanded or long-form audit report: Arguments in support More information on purpose, audit procedures and responsibilities of auditors and directors …
Prohibition of audit firms from providing non-audit services
Prohibition of audit firms from providing non-audit services Increase auditor independence thereby addressing deficient performance component of the audit expectation gap Argument in support Provision of non-audit services creates a …
Compulsory periodic rotation of engagement partner
Compulsory periodic rotation of engagement partner Increases auditor independence which addresses the deficient performance component of the AEG. Arguments for Compulsory rotation of audit firms would help reduce the AEG, …
Addressing the AEG
Addressing the AEG In the upcoming steps we will focus on answering the following: Introducing compulsory periodic rotation of audit partners Prohibiting audit firms from providing non-audit services Requiring auditors to …
Audit expectation gap (Ruhnke and Schmidt, 2014)
Audit expectation gap (Ruhnke and Schmidt, 2014) Failure of the public: public fails to utilise information available regarding auditor’s responsibilities Failure of the auditor: lack of auditor independence & how …
Performance gap
Performance gap Performance: gap between what an auditor can reasonably be expected to accomplish and the auditor’s actual performance as perceived by the users (Porter, 1993). Reasonable expectations add insignificant …
Reasonableness Gap
Reasonableness Gap Reasonableness gap: The gap between what society expects the auditors to achieve and what they can be reasonably expected to accomplish. Users unreasonable expectations regarding auditors’ responsibilities Unreasonable …