Drawbacks of new standard on audit report(about GC)

NNaser9y ago

Hello dear tutor I hope that you are well In June 2014-Q5a it is said(as the main drawback of new standard on report in relation to GC): "The danger is that the auditor's affirmation may be seen as a GUARANTEE of a company's future sustainability...." Is it correct say(and add the above sentence): It somehow creates ADVOCACY threat and increase litigation risk against the company...however the auditor SHOULD comply with new standards and this is because of user's misunderstanding(which is not the auditor's problem)... I ask this question because it is very probable that we have a question in the exam which requires us to state the benefits and drawbacks of new standard abou report.... Thank you in advance

MikeLittleTutor9y ago#1

Good of you to be able to predict with such accuracy the contents of September's exam! 'The danger is that the auditor’s affirmation may be seen as a GUARANTEE of a company’s future sustainability….' - yes, that's perfectly acceptable As for advocacy threat and litigation risks, as you say they are problems of mis-interpretation by the public / the reader Yes, ok. HOWEVER!!!! These are just the same as the first point 'The danger is that the auditor’s affirmation may be seen as a GUARANTEE of a company’s future sustainability….' I don't have a problem with such type of repetition so, ok, put it in there. the worst that can happen is that you don't score But you won't be negatively marked so, again, put it in there

NNaser9y ago#2

Thank you....

MikeLittleTutor9y ago#3

You're welcome

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