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+--- Thread: loopholes (/thread-loopholes)
loopholes - djsammy - 08-03-2004
Hi there, I just want your opinion on a few questions I have
1) How would finding loopholes be potentially valued by the management of a company?
2) Explain how auditors could be participants in aggresively seeking loopholes when the auditing standards and GAAP require the pursuit of truth and fairness in financial statement presentation?
3) Explain how truth and fairness in financial reporting is related to the concept of professionalism?
Thanks in advance
Dj
- Masood - 08-03-2004
Are these questions part of an assignment you are trying to get answered?
Shame on you.
- sumaaan - 08-05-2004
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Hi there, I just want your opinion on a few questions I have
1) How would finding loopholes be potentially valued by the management of a company?
2) Explain how auditors could be participants in aggresively seeking loopholes when the auditing standards and GAAP require the pursuit of truth and fairness in financial statement presentation?
3) Explain how truth and fairness in financial reporting is related to the concept of professionalism?
Thanks in advance
Dj
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Very rough and brief answers in order to your questions
1. To save tax (for example)
2. There is no one single correct way of preparing financial statements... The depriciation policy is one example for this.
3. Auditors should express 'professional skepticism' practically and in all ethical matters, etc etc etc.