Sample Essay

Due to the amendments made above, there calls for some adjustments on the auditor’s report so that they report to their employers the correct and up to date financial information. For instance, before an auditor reports their annual report they will have to ensure that  they checked the current and the previous financial statements for constituent and ensure that the accounts balance so that in case of presentation and utilization they will beneficial to the organization and other stakeholders.

On the hand, the auditor report should clearly clarify and expound on some financial and accounting terms as per the GAAP standards to avoid confusion that arises from misunderstanding and misinterpretation leading to conflict and unnecessary losses. For instance, the word restatement implies the process of the correcting the previously audited financial statements and not the actual changes made on the financial statements. Therefore, it is the obligation of the auditor to clarify these issues to the organization and other stakeholders for clear understanding.

In addition, the transfer of some auditing concepts from the field and incorporating them with that of accounting standards makes the process easier to the auditor as the two fields can now easily be evaluated for consistency easily without having too much manpower to check abnormalities.

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