Auditor’s Changing World
Introduction
The intense competitive world of business should be assessed and therefore, it should be part of the improvement. The area of progress and development was adopted by the auditing authorities in whom in return, being affected the relationship of the auditors and their clients. But the most idea factor of making the improvement and changes being possible is to establish the most reliable report without any bias but with accuracy.
Auditor’s Relationship
Due to the raising of performance in professional world, the auditing world taken steps to improve the education, training, professionalism and relationship on their clients. As much as possible, the taken actions for improvement are in matter of their performance. The quality of performance of professional service is already recognized as a strategic, yet critical program. Planning to achieve the objective has begun in establishing standards for professional conduct.
The plan represents the idea of the most comprehensive improvement program that is under the quality performance. The idea of creating the improvement is to measure the excellence of each auditor. Moreover, the changes revolve in the idea of making the performance turn into the proficiency level. One requirement is to expand the entry of proficiency in the area where an individual can learn the basic knowledge through a comprehensive education and expansion. The continuing professional education standards in accounting and auditing practices will result in the idea of improvement.
Other than that, there is an available review for the accounting and auditing standards that keeps the people being aligned in all the proficiency strategies to avoid being involved in all allegations and substandard of performance. The audit concerns and practice enables all the employees to be alert in the nature of their work. The people engaged in the business of accounting and auditing is subject under the watchful eyes and on the commitment in doing a quality performance.
Factors that Affects the Changes
The changes are implemented due to some important focus of improving some areas of auditing. The regulation or the regulatory environment is the most basic reason on making the changes being implemented. About the industry competition in delivering the right service and company objectives, the entire organization should be subjected for alignment. Organizations cannot shut their eyes in the changing economic views on business and therefore, the company goals and strategies are needed to be under some changes.
Another factor is dealing with the company or the organization. The control environment such as the management of the overall process and procedures should be center in one goal. The honesty and integrity of the organization in terms of making business reliable is the most specific and valuable idea to pursue the goal of improvement. The organizational competence can be about the internal and external affairs. Internal competence happens in the times when the people usually find the ways to improve their capabilities and knowledge about their work. Meanwhile, the external competency is related in the working environment of the firm against the other firms. Many firms are viewing the competency on another as a competitive advantage and keeps to pursue their motives. Most of the firms values the systems and the human resource and treat the two factors as their main ingredients.
Companies often give incentives or rewards, which depends on different forms and award it to the most valuable employee. The incentives and rewards are viewed by some business analyst as the most basic way to improve or boost the competency of the employees in terms of working conditions. On the other hand, the performance pressure is another way to establish focus on making their work preferences more centers on the company objective. Meanwhile, there is a small relevance in the managerial style and attitude of the organization in leading their people.
There is also significant impact in terms of the technological concerns. The system, integration of data, and functions are part of the technology revolution on the business. And the organizational budget is the least factor that can contribute to the changes in auditing.
Impact of Changes
For sure, there are many related impact on the action for changes and more of it affects the issue on corporate governance. In addition, the ethics, values and company culture is being affected by the changes. The technological aspect is also affected which is firstly being part of one of the factors to promote changes. Since there are changes in updating, processing, and procuring of documents, the security features and accuracy are needed to be emphasized. The knowledge management is being part of the changes that can be in the matter of communication and human resource management. These are the answers to keep up with the pace of change in the system, competency, sufficiency in workforce and supervision.
Credit:ivythesis.typepad.com
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