Sample Essay

Thirdly, the standard requires that the auditor should ensure that the financial statements are consistent over a given period of time. Otherwise, any in consistent on the financial statements would imply an organization is utilizing wrong financial information that would be misleading and in appropriate for excellent decision making.

Therefore, the amendment of the standard was intended to assist the auditors to clearly evaluate their reports effectively by utilizing the consistent financial statements as corrected and audited by them. For instance, where an auditor takes over a company that has been audited by another auditor for three years, then it is the responsibility of the new auditor to evaluate the previous financial statements and ensure they are consistent with the current accounts under his jurisdiction otherwise any errors either previous or current will be blamed on me.

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