WAUnit 1 - Written Assignment Unit 1 Basic Accounting PDF

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Written Assignment Unit 1 Basic Accounting...

Description

Why I choose Auditing? Based on several accounting career paths provided, I could see several accounting career paths such as auditing, taxation, financial accounting, consulting, information systems, financial planning, managerial accounting, and entrepreneurship. In this assignment, I am going to choose auditing. I choose auditing because I am taking a bachelor's degree in accounting from a local university and I also considering auditing as one of my future accounting careers. Moreover, I think the career prospect for auditing is very wide in my home country and auditing itself is a must-have accounting skill (even you are taking taxation specialization). All about Auditing Auditing is an activity performed by accountants that examine the financial information of any entity, regardless of their size, orientation, etc (Gupta, 2004). There are four types of audits which are government audit, external audit, internal audit, and forensic audit (Chanda, n.d.). Therefore, I will begin by explaining the four types of auditing to help us understand the practice and role of auditing. 1.

Job Description

Government audits is an audit performed to make sure that the financial statements prepared accurately represent the amount of a company’s taxable income (CFI). A government audit job description includes performing evaluations, reviews, and investigations of public activity, evaluating the operations that have been carried out by comparing it with the standards of performance, quality, or with generally accepted provisions and principles, and concluding the report either verbally or written. An External audit is an audit performed by external parties in order to provide an unbiased opinion that the internal auditor will not be able to give and to determine the company’s financial statements errors and material misstatements. This type of audit is different from the internal audit as the external auditor is independent and more likely to provide an unbiased opinion than the internal auditor. BetterTeam (2020) summarized several job responsibilities of the external audit such as evaluating financial statements, evaluating several accounts for accuracy and compliance, investigating internal systems and operations, assessing risk management approaches, performing audits for other departments, reporting on errors and fraud, and providing feedback reports on findings.

An Internal audit is an audit performed by the internal employees of the organization and the audit is used for the management and internal stakeholders. It is also used to identifies inefficiencies and errors before letting the external auditors review the financial statements. BetterTeam (2020) summarizes several internal audit responsibilities, such as helping managers to make decisions, manage resources and audit assignments, Identify and try to avoid all business and financial risks by monitoring the process, developing and maintaining internal audit policies and procedures based on local and international law, etc. According to Tardi (2020), a Forensic audit is an audit performed as a part of legal proceedings that conduct audits to prevent fraud and embezzlement. There are several responsibilities of forensic audit such as Identifying if any fraud is being carried out, Determining the period of fraud, investigating how the fraud was conducted in secrecy, Estimating the amount of loss that may have occurred, gathering accurate evidence to be produced in court, and Recommending measures to prevent these frauds To sum up, we could say that the responsibilities and job description of auditors are developing audit objectives and plans by reviewing available information and conducting research, helping to design and maintain internal audit procedures and risk assessment processes, prepare audit findings, write audit reports, and develop recommendation, ensure compliance with all applicable plans, policies, and standards, Keeping up with the current industry trends, and ensuring the accuracy of the financial statements 2.

Auditor Salary and job growth rate

Indeed.com (n,d) stated that the average salary for auditors in 2019-2020 is $73020 which is higher than the average USA citizens income which is $67576. Moreover, the Bureau Labor of Statistics (BLS) also projected that the employment of accountants and auditors may grow four percent from 2019 to 2029, which is as fast as the growth of the other occupations. However, the growth rate of the job of an auditor is also linked with the nation’s economic condition (learn.org, n.d.). 3.

Auditing job outlook

Talking about the job outlook (in the next five years), I think auditors still have a certain and secure future as there are still a lot of companies, businesses, firms, the organization even government itself require auditors to check and making sure that the financial statement accurate based on the regulations and laws.

4.

Strengths and weaknesses:

Chitra (n.d.) and Reddy (n.d.) summarized several strengths and weaknesses of auditing. The strengths of auditing are having access to the capital market, helping to monitor the company’s progress, lower capital costs, a deterrent to fraud and inefficiency, gathering information, etc. On the other hand, the weaknesses of auditing would be harassment of staves, chances of fraud, and not guaranteed work. Current Job Posting

SOURCES: LinkedIn. (2021, January 27). Senior Internal Auditor. [Figure]. https://www.linkedin.com/jobs/search/?currentJobId=2397209287&keywords=audit, Conclusion

Auditing is one of the accounting career paths with a certain and secure job outlook and prospects which is used to make sure that the financial information provided is accurate based on the regulations and laws. Moreover, auditing is also useful to help the internal manager make decisions, avoiding risks, and several other advantages regarding auditing. Word Count: 872 words References BetterTeam. (2020, August 17). External Auditor Job Description. Retrieved January 31, 2021, from https://www.betterteam.com/external-auditor-job-description#:~:text=An %20External%20Auditor%20reviews%20the,on%20findings%20and%20providing %20recommendations. BetterTeam. (2020, August 17). Internal Auditor Job Description. Retrieved January 31, 2021, from https://www.betterteam.com/internal-auditor-jobdescription#:~:text=Internal%20Auditors%20are%20accounting %20professionals,management%20processes%20of%20the%20organization. Chanda, N. S. (n.d.). What are the different types of auditor? Retrieved January 31, 2021, from https://www.proschoolonline.com/blog/what-are-the-different-types-of-auditors Gupta, K. (2004). Contemporary Auditing. ISBN 0070585849. McGraw Hill. Indeed.com. (n.d.). How much does an Auditor make in the United States? Retrieved January 31, 2021, from https://www.indeed.com/career/auditor/salaries Learn.org. (n.d.). Auditor: Job Duties, Employment Outlook, and Educational Requirements. Retrieved January 31, 2021, from https://learn.org/articles/Auditor_Job_Duties_Employment_Outlook_and_Educational _Requirements.html Reddy, C. (n.d.). Top 39 Advantages and Disadvantages of Auditing. Retrieved January 31, 2021, from https://content.wisestep.com/top-advantages-disadvantages-auditing/ Tardi, C. (2020, July 7). Forensic Audit Definition. What Is a Forensic Audit? Retrieved January 31, 2021, from https://www.investopedia.com/terms/f/forensicaudit.asp#:~:text=A%20forensic%20audit%20is%20an,have%20a%20forensic %20auditing%20department....