The purpose and usefulness of standard audit report Essay

The purpose and usefulness of standard audit report - Essay Example Normally, audit reports presents the external review of the financial information of a company, conducted by an accounting firm and shareholders use it in assessing the financial health of a company. The Financial Reporting Council (FRC) in UK recommended for the enhancement of the responsibilities in financial reporting for the audit committees through publicizing of expanded reports. The auditor reporting entails coordinated structure that leverages the resources by IAASB (Boeckman et al. 2013, p. 76). A standard report summarizes an audit by the public accounting firm about the liquidity strength of a company. Auditing process entails comparison of the findings to internal audits to identify any discrepancies or errors involved therewith. When the audit is clean, standard audit report results. The standard audit report is the most used audit report, and it ensures that companies do not defraud the investors. Failure of the audit reports to conform to the acceptable standards in ac counting creates apprehension amongst the shareholders of the company (Boeckman et al. 2013, p. 77). The corporate finance statements and other investors express the concerns on the usefulness of standard audit reports (SAR). ... Three types of audit reports issued by auditors include the qualified, unqualified and adverse. Qualified opinions indicate the violation of accounting standards; adverse report shows shortcomings of the company; while unqualified opinion shows not-material misstatements. Audit reports are beneficial to a company. Standard audit report indicates issuance of non-qualified opinion based on the financial information of a company. This allows for extension of business by seeking outside investment to enhance future operations (Carcello 2012, p. 22). Furthermore, standard audit reports entail warnings. Adverse or qualified audit opinions subject the company to further audits resulting in negative goodwill to the outside investors. Companies also experience regulatory fines from the government agencies due to misleading the public on the financial health of the company. Standard audit reports also contain the expert insight. The accounting firms issue information to companies and auditors on acceptable auditing standards (Carcello 2012, p. 24). Standard Audit Report (SAR) SAR changed insignificantly over the last 60 years. Audit reports had not changed prior to 1988 Statements on Auditing Standards (SAS). There were significant changes made on the audit report by the financial statements. Professions tried making changes in 1965, and SAS incorporated introductory, opinion and scope changes in the third paragraph. The changes enhanced the usefulness of the audit report by giving a comprehensive definition of audit, as well as maintaining effective communication of management responsibilities, and the auditor in order to reduce SASs expectation gap. The main objective of SAR is to enhance credibility of the financial statements by the

Direct-to-Customer Drug Advertising Essay Example | Topics and Well Written Essays - 750 words

Direct-to-Customer Drug Advertising - Essay Example But United States of America allows direct-to-customer drug advertisement and some people appreciate this policy. In this paper categorical imperative will be used to solve this dilemma of drug advertisement. We will argue through Kant’s deontological approach that drug advertisement directed to the end users is not ethical. Why Direct-to-Customer Drug Advertising is unethical? Deontological ethics emphasize on the moral duties of a person irrespective of the consequences of an action (Stanford Encyclopedia, 1). An act, therefore, is ethical or good only if it is morally right. An act cannot be ethically justified only by the consequences it follows because wrong actions (like lying) can sometimes lead to good consequences. Therefore deontologists argue that rules or duties make an action ethical, and not the consequences of those actions. Drug advertisement is not morally right because it violates the moral rule that one should act in a way in which one wants to be treated. D rug advertisement is not something desirable for a person who has limited knowledge of medical sciences. I am simply arguing against customer directed drug advertisement because I would not want to expose myself to such advertisement that can harm my health. Drug advertisement will only have limited information and they will entice a person to take self medication. The moral principle that should guide our behavior tells us that drug advertisement should be banned irrespective of the good and bad consequences it has to offer. Categorical imperative is a moral philosophy given by Immanuel Kant. Categorical imperative calls for behaving in a manner that would one be willing to make a general universal principle (Kant, 30). A person, according to Kant, should act according to his or her moral duties and should not take into account the possible consequences of an action. Ethical actions should be based on moral principles rather than ‘good’ consequences. Direct-to-customer drug advertisement is similar to lying in many ways. No one would like to be on the receiving end of lying therefore it can be termed as an unethical behavior. In advertisement no company can tell everything about a drug therefore there will be chances of misunderstanding. Most of the people are not familiar with the medical terms therefore they may perceive it differently. It will be similar to concealing and therefore cannot be termed as an ethical behavior. No matter what are the consequences of drug advertisement to consum ers, the act itself is not moral therefore it cannot be allowed. It is also important to understand that drug marketing can hurt children considerably. The main principle of categorical imperative calls for acting in a way so as you, by will, allow that act to become universally applicable. No one would like their children to see drug advertisements at homes therefore it is not justified morally to legalize customer directed drug marketing. There are also people who argue that it is in the best interest of the society that customer directed drug advertisements should be allowed all over the world. Their arguments stem from the sheer need of the ordinary people who are not able to go to doctors. It will allow them to treat themselves in a better way and avoid high costs of doctors. The argument is of utilitarianist nature that argues maximum good for the majority of population (Bentham, Chapter 1). This argument does not strengthen the case of customer directed