Integrity Research Journals

Model: Open Access/Peer Reviewed
DOI: 10.31248/AJFA
Start Year: 2022

Auditing profession in peril: strategic quality assurance measures as the way forward   |   Article Number: 8BE4AB7A1   |   Vol.1 (1) - October 2022

Received Date: 04 May 2022   |   Accepted Date: 26 October 2022  |   Published Date: 30 October 2022

Authors:  Faboyede, O. Samuel* , Mukoro, O. Dick , Ogunniyi, O. and Atanda, O.

Keywords: accounting information, auditors, audit profession, liability minimization, risk.

Corporate collapses, business failures and fraudulent financial reporting scandals have led to a very turbulent time, resulting in a credibility crisis for the auditing profession as a whole. There is an increasing demand on auditors by regulators, third parties, and users of their services in terms of their responsibilities and duties to perform. Using the secondary data research approach which adopts the qualitative method and a descriptive analysis, this paper examines the reasons why auditing is proving risky and expensive. It finds out that audits have evolved from routine checklists to a vital part of the corporate governance process of companies and that the auditing profession must be actively dynamic and proactive in order to surmount modern day challenges which have drastically impacted the profession. It establishes that unless the profession, the regulators, and users of the services of auditors come together to review the profession, it might be difficult to source value adding auditors in the future. The study recommends, amongst others, that versatile multi-disciplinary knowledge, training, experience, continuous learning process, and urgent engagement of experts in information and communications technology, fraud, forensic accounting, and statistics, will all be needed for success.

Accounting Web (2011). 10 ways to reduce professional liability on audits, reviews and compilations.
AICPA Professional Standards (2013). Code of professional conduct and bylaws.
Ajayi, O. A. (1999). Law and practice of banking. Andy-P Corporate Bureau Publishers, Ibadan.
Allen, J. W. (2003). Walking through the minefield-ethical and liability risks in auditor response letters. The Florida Bar Journal, 77(1), 10-21.
Business Review Kenya (2011). Auditors' liability.
Eze, N. M. (2016). Changes and challenges of auditing in 21st century: The Nigerian experience. International Journal of Finance and Accounting, 5(1), 37-45.
Firer, S. (2009) Audit considerations in an uncertain economy.
Hills, R. (2000). Testimony of former chairman, SEC on the 'Final Rule': Revision of Commission's Auditor Independence Requirement. USA Securities and Exchange Commission.
Ihenyen, S. (2013). Roles and liabilities of auditors in the safeguard of Nigerian stakeholders. Institute of Chartered Accountants of Nigeria, Lagos Mainland District Society ((LMDS).
Ittonen, K. (2010). A theoretical examination of the role of auditing and the relevance of audit reports.
Johnson, M. H. (2000) Testimony on the 'Final Rule' Revision of the Commission's auditor independence requirement, USA Securities and Exchange Commission.
Karim, M. U. (2019) The modern day auditing profession and its challenges.
Kluwer, W. (2020). Challenges facing auditors in 2020.
Marx, B. (2020) Challenges facing the modern day auditing profession.
MBA Knowledge Base (2021) Audit theories: Theories of demand for audit.
Mukoro, D. O. (2012). Milestone in accounting theory: Evolution to revolution. H-Link Excel Publishers, Lagos.
Olaoye, S. A., Aguguom, T. A., Safiriyu, S. E., & Abiola, T. (2019). Independence of Statutory Auditor and Reliability of Financial Statements: Evidence from Listed Manufacturing Companies in Nigerian. International Journal of Asian Social Science, 9(8), 436-449.
Olowookere, K. (2001). Fundamentals of auditing. Silicon Publishing Company, Ibadan.
PricewaterhouseCoopers Forum (2022). PricewaterhouseCoopers- Company profile, information, business description, history, background information on PricewaterhouseCoopers.
SEC (2001) Final Rule: Revision of the commission's auditor independence requirements. USA Securities and Exchange Commission 17 CFR Parts 210 and 240.
Storey, A. J. (2013) An evaluation of reforms to auditor liability: A necessity or a step too far?
The Institute of Internal Affairs (2011). International professional practices framework. Research Foundation. Florida, USA.