Twenty-first Century Challenges to Auditing   Term Paper ID:42694 Click to get this paper

Essay Subject: In its November the Journal of Accountancy published the article Time to Think Differently ...... More...

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Paper Abstract: In its November 2008, the Journal of Accountancy published the article "Time to Think Differently," by Kim Nilsen. This article addressed the issues that confront auditors as the older generation retires. Paper Introduction: Twenty-first Century Challenges to Auditing One of the driving forces for issues in the United States is theaging of the Baby-Boomers people who were born between and That would make the oldest about years old Many professionals have retired by that age and all are making decisionswith retirement in mind These people constitute much of the leadership andhuman capital in our society This article reflects the changes that theaccounting profession is making as these leaders retire and new ones riseinto place The Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Some of the standards are very different than GAAP, and implementing them will requiring education of any CPA dealing with multi- national companies.3) Succession issues also exist. "The early adopters would be part of an SEC proposal to track progress on a series of milestones and decide in 2 11 whether to mandate the use of IFRS by U.S. The AICPA is addressing these problems by tryingto change the way licenses transfer between states and recruiting high-school and college students from a variety of areas. It also showed that the AICPA, under the leadership ofErnie Almonte, has specific programs to address and resolve them. As older CPA's retire and some partnerships break up or fold,there may be places where there are not enough firms to do all of therequired audits. The current teachings on risk analysis, independence, and GAAP no longer guide accountants sufficiently to do their jobs. Since many young CPA's work for a few years and then go to other industries, there will be issues about who will replace the working partners in a firm. Different types of cultural experiences help to identify ordiscount certain inherent risks. So if a partnership needs to work in a differentstate, one of their members must get and additional license or the companymust partner with another, more local firm. This article reflects the changes that theaccounting profession is making as these leaders retire and new ones riseinto place. public companies beginning in 2 14" (Nilsen). The addition of the IFRS will complicate mattersfurther, for the rest of the world does not share our tradition ofconservatism. The critical issue in making the transition is the change in theaccounting profession since these people were trained and started in thebusiness. These people constitute much of the leadership andhuman capital in our society. Auditors are now responsible forchecking not just financial statements but control procedures as well.Exchange rate and international risks are now commonplace. The accountability in auditing depends on the supervision of an experienced CPA. Regulations haveincreased geometrically. This article summarized the 21st century challenges to the Americanauditing profession. Auditing in the 21st century is very different than the one prior. CPA licenses are given by the state chapters and do notcross state boarders. Auditors that speak different languagescan effectively serve many more companies. When combined with the auditingrequirements of switching firms regularly and enlisting different firms toperform the control environment audit, the financial statement audit, andpossibly advisors to the board of directors, there might simply not beenough firms to go around. We need professional researchers to guide the auditors onmeasuring the significance of the impact of errors so that auditors caneffectively allocate their resources. Plus younger CPA's were trainedin an environment where computers are standard and outsourcing is the norm.The challenge for the AICPA is to help particularly small and medium-sizedfirms make the political and professional succession easier for the passingof the torch. Twenty-first Century Challenges to Auditing One of the driving forces for issues in the United States is theaging of the "Baby-Boomers", people who were born between 1946 and 1964.That would make the oldest about 63 years old.Many professionals have retired by that age, and all are making decisionswith retirement in mind. New leaders must be able to help all CPA's to conform to the newbusiness environment, not just get through the latest batch of regulations.The critical factors related to this are:1) There is a great shortage of researchers in the accounting field. Without researchers, there is no way to measure how effective new practices are.2) In the next year companies are likely to begin preparing for the early use of IFRS. Geographical issues may arise too because CPA's licenses are not valid across state lines.4) There are still many ethnic groups that are underrepresented in the accounting field, which the AICPA would like to change. There are also significant geographical issues in our changingenvironment. Diversity and new leadership have a great deal to offer the auditingprofession. Thetechnical aspects have changed so much. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.