Practice review in Singapore
The number of lawsuits against auditors has significantly increased due to the recent spate of company fraud and company collapses. As a result, the image of the auditing profession has also suffered a bad reputation. To restore public confidence and support for the auditing profession, peer revi...
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Main Authors: | , , |
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Format: | Final Year Project |
Language: | English |
Published: |
2015
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Subjects: | |
Online Access: | http://hdl.handle.net/10356/63010 |
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Institution: | Nanyang Technological University |
Language: | English |
Summary: | The number of lawsuits against auditors has significantly increased due to the
recent spate of company fraud and company collapses. As a result, the image
of the auditing profession has also suffered a bad reputation. To restore
public confidence and support for the auditing profession, peer review has
been introduced in United States and Australia. In Singapore, the accounting
body, The Institute of Certified Public Accountants of Singapore (ICPAS), is
also following suit by introducing practice review as a compulsory procedure
for all auditing firms.
Presently, the agenda for Practice Review is only at the discussion
memorandum stage. Practice Review is scheduled to be implemented by July
1994. Every public accounting fum is subject to a review every 3 years. Due
to the limited information available to practising CPAs, there has been much
doubts and uncertainty regarding the benefits of practice review in Singapore.
Thus, this study seeks to address the following issues:
1. Will practice review enhance the image of the profession?
2. Will practice review enhance the quality control procedures of the CPA
firms?
3. Is practice review cost-justified with regards to the two major benefits
identified above?
A questionnaire survey on 178 practicing CPAs from big and small CPA firms
in Singapore was conducted to collect data to address the above issues. This
research is further substantiated by a literature study. The research results indicated that the majority agreed that practice review
can enhance the image of the profession and the quality of work done. There
were substantially equal percentage of those who felt that practice review is
cost justified and those that felt otherwise. It was also found that there was no
significant correlation between opinions of CPAs from small and large
accounting firms regarding the issues identified. |
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