Week 2 - DQ 1

Why is public accounting often viewed as a guarantor of results, or even as a provider of assurance that one's investment is of high quality? To what extent is it reasonable to view the auditor as a guarantor? Explain. To what extent do you believe that user expectations of the public accounting profession appear to be unwarranted? Explain.

Response #1

I do not think viewing a public accounting or an auditor for that matter as a guarantor of results is fair. Instead, auditors should be viewed as those responsible to plan and perform an audit to obtain reasonable assurance that the financial statements are free from material misstatement. In other words, auditors provided, "Reasonable assurance but not a guarantee that financial statements are free from errors or...