Can increased regulation improve the quality of auditing ?

1. In relation to financial statement audits explain why there is always a risk that the auditors opinion may be wrong A good answer would: Explain what is an audit/it’s objective List a number (3-5 or more) of reasons why the audit opinion may be wrong and explained why they may lead to a wrong opinion by the auditors . Also commented on how likely that is and what auditors do to minimise that risk Top answers would demonstrate you have done research about cases from the past where audit opinion have subsequently been found to be wrong and linked to the listed reasons above . 2. Critically evaluate the contribution that financial statements make to society. A good answer would : “Critically evaluate” requires that you provide the arguments of two opposing views You are a member of society – what are your expectations? It is an opportunity to reflect on what you think This could be achieved through explaining a range of contributions (3-5) that you think audits make to society at large (rather than shareholders only) followed by a couple of shortcomings or where audits fail/society expects more. Top answers would demonstrate you have done research of articles (most likely in the press rather than academic article) where that is debated

3. Can increased regulation improve the quality of auditing ? A good answer would: It is an opportunity to reflect on what you think – yes or no? Then explain why you think that What is the opposite view and why do you think it is wrong ? Top answers would demonstrate you have done research on how regulation of audits has changed in the UK (or elsewhere – EU? USA? Elsewhere?) in the last few years . What new regulation is being proposed . Do you think these proposed new regulation would improve the quality of audits ? How/why?