Essay to address the following issuesIn your research, you found significant con

Question

Essay to address the following issuesIn your research, you found significant conflicting issues between global reporting standards. These affect every audit engagement that addresses books of original entry that utilize foreign GAAP that are translated into financial statements. Yourprevious coursework has taught you that in order for stakeholders to accurately address financial performance metrics, they have to be based on standards that are consistent and that follow US GAAP rules. Comparative analyses can only take place in an environment of stable, static and consistent rules.Your final project will be to synthesize the issues/data previously researched into a single paper. Prepare a 3-5 page paper that demonstrates your understanding of the issues. Address the following questions in your final paper: What affect will foreign accounting standards have on your audit engagement from a resource, time and cost standpoint? How will foreign standards affect your audit plan and sampling techniques used to validate original transactions? How will you approach potential fraud issues in a global environment?How is the accounting profession changing in order to address the issue of inconsistent accounting standards?

Explanation / Answer

Because indicators rely on numerical data, technical experts (particularly accountants) have considerable power over both decision making and interpretation of legal norms on sustainability. The perceived authority of these experts may mask conflicts of interest.

For example, sustainability report validation is a growing business, especially for accounting firms. A large service industry comprised largely of sustainability consultancies and auditing firms has emerged around the periodic revision of the guidelines, preparation of reports, their verification, stakeholder outreach, and various efforts to standardize and institutionalize the above activities. These firms arguably derive more economic benefit from the GRI than any other stakeholder. In fact, some accounting firms have established global sustainability practice groups that focus on corporate sustainability measurement and reporting.

The role of accounting firms as independent third party verifiers is dubious given that they are actively governing the same organization that they are presumably regulating. Representatives from large accounting firms occupy key positions in the GRI

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