Accounting is a profession which requires the application of various standards.

These
standards can range from moderately difficult to very complex. With the profession having a
significant number of standards and rules, how can users of financial information be assured they
are receiving reliable data? This is where auditing services become a valuable source, especially
to external users of financial information. Auditors work in an important profession where it is
important to understand the critical roles which they will be expected to fulfill.
Auditors play an important role; they provide assurance to financial records as well to various
business information and systems. Auditing provides external users with the assurance that
specified financial or pertinent information is stated correctly in accordance with established
criteria. US GAAP has many rules and regulations which are to be applied by accounting
professionals, and an auditor provides verification of their proper use. Beyond the application of
GAAP, auditors can play an active role in providing guidance in a companys establishment of
controls. Considering the various services provided by auditors, the profession is no doubt an
important aspect of functional and successful businesses.
As a going concern, a business must be sure they are operating in the most efficient capacity.
While auditors play an important role on the financial end of an entity, they also can play a vital
part in a business through management consulting. Business persons, at times, do well to call in
a financial expert who can analyze historical and expected future financial information and make
recommendations. These recommendations can range from attesting to an idea to issuing a
report that suggests various approaches which may prove more financially responsible. An
auditor is trained to find inconsistent application of financial recording and to evaluate future
projects; however, the scope is not limited to analyzing associated costs. An auditor performs

various services which vary greatly; therefore, an understanding of the critical role they play is
needed.
Auditors perform various critical roles within the business environment. These roles are
considered critical because the outcome may potentially benefit or hinder a business. One major
duty auditors have is that of attesting to a business information. A particular service,
information risk, involves auditors verifying information provided by a business was correctly
stated; once verified it may be possible for a company to then expect lower interest rates (Arens,
Elder, Beasley 6). Independence requires auditors to not formulate any preconceived opinions;
therefore, opinions issued are highly valued by external sources. With every audit a practitioner
performs, they essentially put their reputation on the line, and in such, should always remain
independent since it allows for consistency. Independence is a role which is highly valuable
when any audit function is performed. Remaining independent is critical as it provides external
users of information with assurance that a particular part of a company has been verified by an
external source who is free from any obligation to the company. When analyzing data,
independence comes into question. If independence is not maintained, then the role as an
analyzer is compromised, and therefore, valueless. Upon analytics completion, if found
satisfactory, an auditor may issue a statement of assurance or attest to the truthful representation
of the information audited.
Auditors are also used to perform audits on employee benefit programs. Employee Stock
Option Plans are interesting and require about four personnel to complete. The experience was
interesting in the fact, little consideration was given to auditing such an item; however, sitting in
on the audit for a day provided insight into the world of an auditor. A special program was used
to make the audit flow effortlessly, and there was an introduction to the amount of paperwork

required. The realization that typing will be part of being an accountant was reinforced. Checks
and balances were interesting as well. After each individual performed their assigned task,
another would verify the completeness, then pass it onto the manager on site, who promised they
later pass it onto the partner back at the firm once the audit is complete. The opportunity to see
first-hand, the operations of an audit, was exciting and thought provoking, and it has already
helped by introducing terms and familiarizing with what may be seen on an audit.
Auditors are more than number crunchers and more than individuals who search out any
misrepresentation of financial information. Analysts and verifiers are two words which amply
describe what auditors are and do. As the business world has recently faced so many fraudulent
schemes, an auditors position has never been more important for the publics financial safety.

Arens, Alvin A., Randall J. Elder, Mark S. Beasley. Auditing and Assurance Services, An
Integrated Approach 14th ed. New Jersey: Prentice Hall, 2012. Print.

Chapter 1 Multiple Choice (page 20 -21)

1-14
a. 3
b. 2
c. 2
d. 3

1-15
a. 2
b. 3
c. 4
d. 3
Chapter 2 Multiple Choice (page 41 -42)
2-16
a. 2
b. 2
c. 3
d. 3
2-17
a. 2
b. 1
c. 2
d. 3