Has the auditor lost its relevance as a profession Literature review

Has the auditor lost its relevance as a barter - Literature review ExampleThe secondary data sources have been apply to study the previous studies and the empirical literature on the incompetency of the auditors and the adverse consequences faced the public due to their irresponsible activities. The literature review then assesses the confession of the expenses incurred for the purpose of auditing and the nourish that has been added as a result of auditing activities. The questions asked on the relevance of auditing function, mainstream and the alternative viewpoints on the topic have been reviewed. The recommendations on the ways of adding relevance to the auditing profession have also been included in this study. Historical background The auditors and their functions of auditing have never in such a limelight as ever before. The item of the global financial crisis has raised concerns in the US, UK, Belgium, Singapore and in many other countries of the effectiveness of the aud iting profession in the industry. The economic debacle exposed the inefficiencies in the auditing practices conducted by the auditors. The US Senate, parliaments in different countries of Europe have started to relook into exploring a new model for auditing practices as its was felt that the auditors and their profession of auditing has lost its relevance in streamlining the business records, identifying the gaps and loophole and help the business to keep fair and transparent financial records for public disclosure. Several companies in the past have been involved in the financial scams where there balance sheets and financial statements have been inflated and thereby misled the investors about the true financial status of the companies. For example, Enron has been earmarked as the biggest audit failure in the biography when they showed poor standards in auditing of financial statements mainly due to the mal intentions of their board of directors that led to the incorrect disclosur e of financial statements to its shareholders. The eventual fall of performance of Enron brought out the verity and finally Enron Corporation went bankrupt. The impacts of failure of auditing were hugely felt during the global financial crisis. The accountability for lack of transparency in the financial statements was affixed to the auditors (Kornberger, Justesen and Mouritsen, 2011, p.525). Hence, the costs incurred and the measure and energy spent in the profession of auditing were felt as unnecessary burdens with the advent of control technologies and automated systems to streamline the financial records and information. Methodologies The methodologies follow for carrying out the activities of auditing is authorized in establishing the relevance and effectiveness of the auditors. The auditors are the final check points of the financial information to be disclosed to the public after their certification. Thus the methodology adopted by them for evaluating the values of the as sets and liabilities of the company in judging the correctness of the financial information is very important. The auditors follow the method of going concern in assessing the value of the assets and liabilities of the companies. This raises the complications in the activities of the auditing profession. The method of going