Question 1. – Do only one part Since the demise of Arthur Andersen and the passage of the Sarbanes-Oxley Act of 2002 the profession has witnessed an almost unprecedented increase in the frequency of auditor switching. Explain the causes and consequences

Question 1. – Do only one part

Since the demise of Arthur Andersen and the passage of the Sarbanes-Oxley Act of 2002 the profession has witnessed an almost unprecedented increase in the frequency of auditor switching.

Explain the causes and consequences of this shift.

Has there been a shift in the audit fee patterns of the big four and non-big four auditing firms over the last 10 years?

Question 2.

The audit report has transitioned over the years from a unique narrative for each engagement to a more standardised template.

Discuss

Question 3.

Since the demise of Arthur Andersen and the passage of the Sarbanes-Oxley Act of 2002 there has been ongoing debate as to mandatory audit firm rotation and partner signing.

Discuss the reasons for and against.

Question 4.

What is 2 + 2

Engineer – “It lies between 3.98 and 4.02.”

Mathematician – “In 2 hours I can demonstrate it equals 4 with the following proof.”

Physicist – “It’s in the magnitude of 1-10!”

Social Worker – “I don’t know the answer, but I am glad we discussed this important question.”

Attorney – “In the case Smith vs State, 2 + 2 was declared to be 4.”

Trader – “Are you buying or selling.”

Accountant – “What would you like it to be?”

Discuss accounting and auditing in terms of the seven perspectives.