07-16-2010, 07:28 PM
Hadeedian
I advise you to revisit all International Audit Pronouncements and try to understand the responsibility of auditors, if you are in fact wishing to get the clarity.
Corruption is never documented in majority of the cases, so no one in the world can capture it when he is supposed to base his work on documents and documentary evidences and documented explanations only; and the thing which you are calling as fraud mainly comes under the definition of such malpractices. These are not frauds in fact. All International Pronouncements even agree that a well planned fraud cannot be surfaced even by applying all reasonable testings owing to the nature of audit. You should learn what is the nature of audit.
Notwithstanding this, I don't tend to agree that good firms keep queit if something is surfaced, or apply any lesser than required due procedures to establish the MODERATE ASSURANCE they require for the stakeholders.
Further, auditors no where in the world are supposed to be scoiety cleaners or policemen or NAB officials ) or Jehadis or Commandos or secret agents or anything like Blood-Hounds (appropriate words used by Nauman). Strange expectations you have derived from your profession even after claiming that you did your CA Inter. Their duty is to remain ethical on their work, do appropriate planning and risk assessments (as per Internationally accepted procedures and not strictly as per spys or secret agents), collect appropriate audit evidence of a given documented record of financials setting appropriate materiality levels, using sampling techniques and applying tests of controls or adopting substantive procedures and to provide MODERATE ASSURANCE based upon the audit evidences they gather and conlcude as per Internationally accepted requirements.
Auditors no where have any ABSOLUTE responsibility towards stakeholders and society owing to inherent limitations and test check nature of the audit. Yes, whatever they conclude based upon their audit and keeping in view materiality levels; they should report it at appropriate level. What is appropriate level is again to be checked as per International Standards.
I am not here to impart lectures on auditing and its scope, so the above is only a food for thought. I wonder why did not you learn things about audit even theoratically. Don't mind my words please.
Notwithstanding the above, I advise you to visit any stock exchange (KSE, ISE or LSE), go to its library, invest two three days, check the annual reports of industries and entities of all sectors selecting a good entity mix as sample unbiasedly, and conclude how many qualified / adverse /disclaimed / emphasized reports are available there. You will find the answer to your question to a great extent.
Now after seeing how many modified reports are avialble, also dig out what eventually happened pursuant to that reporting. I believe all good firms perform their work diligently, yet, even after appropriate reporting, check what actually happens. How many had been hanged in past where such reports were issued?
As an instance around 35%-40% of my own clients have been given qualified reports during the last year. Some were even adverse. What are you talking about my friend. You need to learn too much before raising the baseless questions.
Regardless of above suggestion, I tend to agree that auditors (everywhere in the world) are also human beings and the things which exist in all humanity can exist in auditors worldwide as well. That's why events like Enron and Satyam occur. But in most of cases the culprits (if they are proved so) are taken to the task. I wish you to study that Pakistan Accountant (pertaining to almost 6 or 7 months back)in which Corporate Frauds were the theme and an article was published on History of Corporate Frauds in Pakistan. Study that article as the writer got the rare courage of mentioning/uncovering such corporate frauds by name; and find out what happened eventually with such frauds, their auditors and ultimate outcome.
However, mind it, anything wrong done by a few does not totally destroy the worth and contribution of a particular profession. Kidneys' illegal trade does not destroy the honor of medicine profession altogether. Cowardness of a general does not destroy the genuinity of entire army. Just an example. Yes I agree that such instances can affect thousands of lives; but what can be done. These are the human limitations and you cannot create an ideal society anywhere.
Although the above discussion was necessary so that you don't feel there is no answer to your questions; still, I advise you to remain focused on your target instead of merely finding out pitfalls of others. If you have to be a CA, try to qualify your exams as early as possible for you and come into professional practice and mend the things which you AT ALL percieve to be incorrect and set an example for others. When I say this, people feel that I am taunting them. No; in fact I don't taunt. It is a fact that you guys have to take the lead in coming times. So, flow with the system, achieve your goal, come in the race and set examples. If you don't courage then please avoid commenting on the courage of others.
Sitting outside the ring and raising comments on the performance of fighters is no bravery; do come in the ring and fight back what you think should be fought back. Otherwise, your claims, objections, statements, abuses etc would be nothing but an example of grapes are sour. Don't mind this connotation. You will one day realize that leaving a profession or any endeavor for the fear of its hardships and for the anamolies one percieves and then commenting on it like this is none of other thing but is what I just wrote. Should we comment how bad some hiker is performing and what ACTUALLY he should do when we don't even dare to put first step on a mountain?
If you think the profession (also adopted by you) is wrong and you don't even hold your thoughts (however these may be misconcieved) with you then why you are running from your duty? Auditors kisi aur jahaan say paida hotay hain? No, tum jaisay he hotay hain. Come and fight back. Otherwise you know what will you be called.
I hope you will not mind anything mentioned above because still I feel you should get out of frustration and you can achieve the target as Allah has given you all the abilities.
Regards,
