Course of action Assignment Example | Topics and Well Written Essays - 250 words

Course of action - Assignment ExampleMAPR enhances independence in event since limited interaction with any client reduces not only the pressure but also the fiscal as well as other inducements, for auditing partners to sacrifice their reputation and independence so as to anticipate silent. As a consequence, auditing partners might be enthusiastic to question management on fiscal reporting and creative accounting issues. Secondly, long audit partner tenure means creation of a comfortable relationship between auditing partner and client, which adversely affects a partners show of independence. thus such improvements as those can be brought by MAPR. The other reason why MAPR is best get over of action is on the basis of on introduction of new/ judicious eyeball. Thus MAPR avoids staleness emanating from clamant previous engagements and thus will enhance quality and integrity of audit, since rotation permits the much needed fresh eyes to evaluate the firms financial statements as well as accounting policies/practices (Ottaway, 2013).Evidence-the US general accounting office (GAO), current data on restatement rates linking to error or fraud in previous financial statements subsequent to the closure of Arthur Anderson in 2002 that demanded compulsory auditor rotation for more than than 1200 firms. Thus the data indicates a marked rise in restatement rates for error and fraud later auditor rotation. It is evident therefore, that from this research GAO provided a possibly persuasive research demonstrating that fresh eyes in reality do expose fraud and mistakes under a MAPR comparable situation. This is apparent therefore, that MAPR promotes conservative and diligence close making by partners as they will be alert, specifically at the end of their term, knowing a new auditor will be keenly inspecting their work with a pair of fresh eyes (Ottaway,