Language:

Assessment of Tone at the Top

The CPA journal (1975), 2015-06, Vol.85 (6), p.50

Full text available

Citations Cited by

Title:
Assessment of Tone at the Top
Author: Lightle, Susan S ; Baker, Bud ; Castellano, Joseph F
Subjects: Audit committees ; Auditing standards ; Auditors ; Boards of directors ; Corporate profits ; Earnings management ; Executives ; Financial reporting ; Financial statements ; Internal controls ; Risk assessment
Is Part Of: The CPA journal (1975), 2015-06, Vol.85 (6), p.50
Description: Standards require that auditors assess an entity's internal controls over financial reporting (ICFR), including the control environment, which is influenced by the tone set by management and the board regarding the importance of ICFR and the expected standards of employee conduct. This article argues that auditors cannot assess the tone at the top by simply checking off a list of control mechanisms; they must understand what motivates behavior within the organization (what might be called the psychology of control risk assessment). It also illustrates a model to help auditors anticipate when an organization is prone to earnings manipulation, and suggests how to assess the tone at the top of an organization. At the same time, auditors are expected to be more vigilant than ever in carrying out their responsibility to identify misleading financial statements.
Publisher: New York: New York State Society of Certified Public Accountants
Language: English
Identifier: ISSN: 0732-8435
Source: ProQuest Central

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Searching Remote Databases, Please Wait