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Introduction In todays society the exercise of an auditors to the economic and ethical leadership sets the bounding standard

or in other words equips an auditor in such a way that recognizes him as a reliable body. With the growing conscious recognition of the importance of financial data in the ordering of everyday business and economic life, the need of basic economic facts is providing a constantly enlarging opportunity for the accounting profession. The auditors' reports have an especial capacity to fulfill the need for reliable and authoritative financial material not only because of the reputation or prestige of the certified statements, but also because of the significance generally attached by the business man to the functions of the auditor and his reports. These functions and the scope of these reports, have in the past been definitely related to the character of and changes in business activity. Audits and reviews are basically procedures performed on the financial statements of a company, for the purpose of determining whether the financial statements include any material misstatements. Misstatements are essentially wrong numbers due to numerical errors, fraud, or errors in interpreting the accounting rules. Misstatements are material if they are large enough to make a difference to a user of the financial statements, such as a bank or investor. And the person who involved in auditing is known as auditor. It also provides the techniques necessary to examine the internal control system of a company and perform operational or compliance audits by internal or external auditors. The early conceptions of the functions of the auditor were such as to confine him to the duties of a mere checker and verifier of debits and credits. As business became more complex in its interrelationships there has been a compensating broadening demand for the acceptance of new and formerly unrecognized responsibilities by the auditor. This has progressed so far that the highest type of auditor is looked upon today as a financial expert. The premises upon which most audits are predicated, however, are still largely those of the checker-verifier. Recent economic trends have accentuated the new conceptions and demands upon the auditor. The control of business enterprises within and among themselves has emphasized the importance of the budgetary and managerial aspects of the accountants' reports in enabling business units to coordinate their internal and external activities in the scheme of the economic plan. Thus the word audit is derived from the Latin word audire which means to hear. In olden times, whenever the owners of a business suspected fraud, they appointed certain persons to check the accounts. Such persons sent for the accountants and heard whatever they had to say connection with the accounts. It was an Italian, Luca Paciaio, who first published his treatise on double entry system of book-keeping for the first time in 1494. He mentioned and described the duties and responsibilities of an auditor, since then; there have been lot of changes in the scope and definition of audit and the duties and responsibilities of an auditor. Spicer and Pegler , have defined Audit as such as examination of the books, accounts and vouchers of a business,

as will enable the auditor to satisfy himself that the balance sheet is properly drawn up, so as to give a true and fair view of the state of the affairs of the business, and whether the profit and Loss account gives a true and fair view of profit or loss for the financial period, according to the best of his information and the explanations given to him and as shown by the books and if not, in what respect he is not satisfied. F.R.M. De Paula, an English authority on auditing literature, describes auditing as the examination of a balance sheet and Profit and Loss account prepared by others, together with the books, accounts, and vouchers relating thereto in such a manner that manner that auditor may be able to satisfy himself and honestly report that, in his opinion, such balance sheet properly drawn up so as to exhibit a true and correct view of the state of affairs to the particular concern according to the information and explanations given to him, and as shown by the books. He further continues that an audit of a balance sheet involves the verification of the profit and loss account, as the balance of that account must be included in some form or other in the former. Auditor An auditor in general engages in the evaluation of an organization, system, process, project or product. Auditors tasks are performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control. The goal of an auditor is to express an opinion on the person/organization/system in question, under evaluation based on work done on a test basis. Due to practical constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits. In the case of financial audits, a set of financial statements are said to be true and fair when they are free of material misstatements - a concept influenced by both quantitative and qualitative factors. Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business. However, recent auditing has begun to include other information about the system, such as information about environmental performance. As a result, there are now professions conducting environmental audits. An auditor also engages in an independent assessment of the fairness by which a company's financial statements are presented by its management. It is performed by competent, independent and objective person(s) known as auditors or accountants, who then issue an auditor's report based on the results of the audit. However an auditor may be a watchdog but not a bloodhound. The task of an auditor is to determine the quality of financial & operational/administrative control by examining and evaluating the records, system and procedure, operations and activities of an organization. Financial and operational control can be easily determined by analytical reviews, intra and inter firm comparison and comparison of current information with anticipated results. Profit as a percentage of sales, expenses as a percentage of sales, working capital ratio, return on investment and important guidelines to measure a concerns performance. Through

interpretation of significant ratios an auditor can find firms strength and weaknesses and where to emphasize to detect fraud and error. It is not possible for an auditor to check every single thing. In such a situation, the auditor has to evaluate the internal control system introduced by the organization. By doing this, an auditor also become aware of the operational control in forcein an organization. For example, if an auditor finds that the wages as a percentage of sales is far higher in this year than last year, then he will decide to apply more substantive tests in this regard. Internal auditor conclude whether the resource utilization of the enterprise is effective & efficient or not by reviewing whether the accounting records have been properly maintained, the assets adequately safeguarded and the procedure lay down by the management properly compiled with. Auditors have to conduct an appraisal of the various organizational functions and provide advice and recommendation on the activities and operation reviewed by him. The auditors are straightforward, honest, independent and sincere in his approach to this professional work. Professional ethics ensure right action on the part of the members of the profession. That is why everybody relies on auditors determination on the reliability of the financial and operational control of an enterprise. The auditor needs to follow a certain guidelines and standards. Standard is the means of judging the level of professional competence and the degree of consistency attained by auditors in the performance of their duties/functions. For this purpose, we are to study and understand professional pronouncements on auditing which indicating the collective view of the profession on: - Principles and techniques of auditing and the application of such principles and techniques to various auditing situations. Professional bodies of accountants of various countries have issued pronouncements on accepted auditing practices for the guidance of their members. Most of these pronouncements discuss various auditing practices primarily required for the purpose of expressing an expert opinion on financial statements. The pronouncements issued by professional bodies attempt to codify the auditing practices expected to be observed by the auditor when he seeks to express an opinion on financial statement. These however, do not interfere with the auditors individual judgment in selecting the procedure to be followed and in determining the extent to which he should apply such procedures. The analytical review steps for forming his overall conclusions about the consistency of financial information as a whole with his knowledge of the entitys business and relevant economic conditions is also performed by the auditor. For example an auditor can compare significant ratios for the entity with those of other entities in the same industry or with the industry average. This review may assist an auditor in identifying an unusual and unexpected balance, which was not previously identified. Though the procedures of analytical review have been highly commendable in the arena of professional audit, the extent of its reliance much depend on the substantive information that might be available from the entity, nature of assertion the auditor might exert on the business logically and the predictability of relationships among items of financial information (so that any deviation there from can be taken as being indicative of potential miss

statements) and the strength of the evaluation of the internal control. If the auditor really faces any such circumstance where the application of analytical review may not be expected to desired results as expected of a good audit report, there is no barrier for the auditor for an extensive check, as he may think proper and adequate. The system of analytical review adopted generally in combinations of other method have in major cases yielded the desired results enabling the auditor to present a good audit report; exhibiting a proper statement of financial information of the entity under audit. The auditors concept of internal control is fundamentally identical to the concept of control or management control of the management theorists. Its one of the activities or functions of management, but it is notable in its complete dependence upon the other functions of management. This has led some management thinkers to suggest that it should not be regarded as a distinct function in its own right, just as others have suggested that coordination should not be regarded as a separate function. As we know, there can be no control unless there is a plan to be controlled. A successful organization, which established individual responsibilities, is likewise an essential component of control. Staffing must also be appropriate for control to be effective. All it means is that when the auditor reviews an enterprises arrangements for internal control, the evaluation is of the management process, embracing all the functions of management viz: planning, organizing, staffing, directing and leading controlling and finally coordinating. In practice an internal auditor may be restricted by the terms of reference to conducting reviews only in certain sections of the enterprise. They may be asked to audit only up to a certain level. Usually it is impossible for internal audit effectively above the organizational level of the director of internal audit. They may audit only certain operations, such as accounting and financial. Even if internal audit has a restricted scope but within the areas where it does have a mandate it should be concerned with all the functions of management (planning, organizing, staffing, directing, controlling, and coordinating). The only exception to this is where internal audit if restricted to checking for distributed compliance with laid down procedures and has no role in connecting upon which procedures are the right ones: sterile mode of internal auditing if fortunately seldom seen now a days. So it appears that internal audit is concerned to review all the arrangements that have been made to manage the enterprise, being limited only by any boundary that management themselves have prescribed defining the scope of their internal auditing department. But within these boundaries internal audit is concerned to review all the functions of management. Anyway the financial auditor has no limitation like that of the internal auditor and hence, he can go for in depth auditing as per acceptable audit practices.

The term investigation in auditing means a systematic and in depth examination or enquiry to establish a fact or to evaluate a specific situation. Professional accountants are often called upon to investigate the accounts or related records of an undertaking. Such assignments differ substantially from a normal audit tasks. Audit aims at collection on the financial statements or other data under examination. An investigation, on the other hand, requires a special in depth scrutiny of the particular records or transactions with the object of substantiating a fact or happening or assessing a particular situation. In the backdrop of the basic differences between nature and objectives of an audit and those of an investigation, the approach to an investigation is different from that followed in an audit. An investigation calls for a more thorough examination of the selected areas than what is required in an audit of the entire financial aspect of the entity under audit. This is because the scope and objective of an audit are broad and general while those of investigation are narrow and specific. The investigators are concerned with a particular task in a given area but the audit cannot be completed without examination and scrutiny of the whole area of the entity. It will this appear that an investigation looks for substantive and in some cases, even conclusive evidence for establishing a fact, say a specific complain in installing a machinery, whereas, an auditor may rely on a persuasive evidence for his circumstantial audit report. An investigator does not accept a fact as correct until it is substantiated. Unlike an auditor, an investigator cannot presume that in the absence of suspicious circumstances, a figure or a stated fact is necessarily correct. As an investigator to investigate the alleged misappropriation of closing stock or of finished stock of the company under investigation, a professional accountant is engaged. His objective would be to gather substantive evidence in support of the quantitative and monetary figures of the opening stick, production, sales and dispatches and the stock register. For these, he would check all the related records thoroughly, looking into every item carefully. If he uses here the statistical sampling techniques like random sampling, he would do so merely to narrow down his inquiry. Rather, he would scrutinizes and crosscheck the various transactions till he is able to check precisely what he is looking for. In a financial audit assignment on the other hand, the auditor i.e. a professional accountant would select a representative sample from the transactions, examine it in depth and if nothing arouses his suspicious, he would rely on the examination and report that the accounts and the statements represent a true and a fair view of the affairs of the undertaking. To use the oft repeated metaphor, an auditor is a watchdog and not a bloodhound. But the investigator shall stretch his nose for the faintest of scents of frauds, material misstatements, material omissions from the record and the like. Due to the very purpose and nature of investigators, an investigator, even though he is a professional accountant is not bound unlike an auditor, by accounting conventions, IGAs, ISAs

(International Guidelines on Auditing, International Standard on Auditing) policies and disclosure requirements. The exact nature and procedures to be followed in conducting an investigation depend entirely upon the circumstances of the case, the nature of appointment, requirement of the investigation results, etc. but the fundamental achievements to be obtained through investigation entirely depends on the knowledge, Intelligence Quest (IQ), honesty, integrity and the foresightedness of the professional accountant being appointed as such as an investigator. Now it is clear that the importance of audit of the financial data is so vast that it is much more important in an organization in order to run it efficiently, effectively and in an orderly manner. There are two types of auditors who are basically involved with present days auditing practices: Internal Auditor - Internal auditors are employees of a company hired to assess and evaluate its system of internal control. To maintain independence, they present their reports directly to the Board of Directors or to Top Management. They provide functional operation to the concern. Internal Auditors are employees of the company so that they can easily find out the frauds. External A auditor External auditors are independent staff assigned by an auditing firm to assess and evaluate financial statements of their clients or to perform other agreed upon evaluations. Most external auditors are employed by accounting firms for annual engagements. They are called upon from the outside of the company.

History of Auditing In order to better understand the role of auditors in the financial crisis, I will first investigate the history of the profession. The recent global economic meltdown has revolutionized the business world and placed new demands on accountants. More evidently, the role of auditors has evolved. This is partially due to the fact that the rules of business have changed, and accounting is more important in our society than ever. Auditing services are currently provided to a large number of business and government units, suggesting that the services themselves are valued highly by consumers. Statistics show that right before the Securities Exchange Acts of 1933 and 1934, 82 percent of firms trading on the New York Stock Exchange were already audited by CPAs.7 Even today, unregulated segments of the economy are voluntarily audited. The history of audit extends far beyond the emergence of the SEC. Audits are identified as early as 500 to 300 B.C. in Athens, where the Greek city-state revenues and expenditures must be verified by the state accountants.8 Later, the auditing profession developed in Italy as a way of

maintaining accountability of ships with riches returning to Europe from the Old World. In 1066, after the Norman Conquest, merchant guilds started to appear in England.9 These guilds sought to protect the prosperity of the merchants. The guilds were the earliest examples of incorporation. Gradually, the merchant guilds began to require annual audit for the benefit of the merchants. The auditors were selected from guild members.10 even back then, auditors had ample reasons to be independent. They would be heavily fined for not completing the audit in a timely fashion, or if the quality were below a certain level.11 Nonperformance would also negatively impact auditors reputation, and could possible cause auditors to lose their guild membership and share of the guilds monopoly profits. In other words, the guild auditors all owned property. In the case that they neglected their duty, the guild could easily recover damages against them.12 This provided auditors with further incentives to be independent and report any contract breach they found. Later the use of an audit committee became a popular method to encourage high performance and independence. It reduced opportunities of collusion between manager and auditors. During the Industrial Revolution from 1500 to 1850, auditing expanded as a profession. In fact, in 1844, Great Britain formalized the already common practice of voluntary company audits.13 Directors were to keep accounts and have them audited by persons other than the directors or their clerks. Interestingly, auditors were required to be shareholders, a practice that today would certainly violate the independence criteria. This perhaps was done to financially incentivize auditors to act in the best interest of their clients. Furthermore, the auditors needed not to be outsiders, or even be a professional firm.14 going forward, the 1933 Securities Act required corporations subject to the act to have audits by independent certified public accountants. At that time, many U.S. audit firms were started by British chartered accountants who came to the United States to audit American companies selling securities in London. This overview of the evolution of audit demonstrates that audit persisted through time in unregulated environments. Over time, the substitution of professional auditors for shareholder auditors occurred in both Britain and America even though the law made no such requirement.16 this trend suggests that the market forces were changing the demand for audit. As market forces changed, so did the nature of audit. The persistence of demand for auditors suggests that audit brings value beyond regulatory compliance. The Economic Responsibility-oriented Audit Model Accountability relationship is the most important prerequisite for the emergence and development of audit. The history of the economic responsibility audit has expounded that the embryonic form of economic responsibility has been implicated in the content of audit from the beginning, which have a coupling of the origin purpose of audit. During the development process of audit, with the increasing complexity of socio-economic activities, and the

changeable requirements of the client entrusted managing the economic resources to the trustees, the result can be found that the accountability relationship has expanded from fiscal accountability to operating accountability, management accountability and even to a wider range of social responsibility. So it makes the objectives of audit begin to shift from the error checking and preventing cheating to the credibility and fairness of financial statements, and also makes the audit model develop from the accounting number-oriented audit model to the system-oriented audit model, and then develop into risk-oriented audit model. All of those make the type of audit develop from the pure fiscal and financial audit into the much more complicated type, such as: operation audit, management audit, performance audit, environmental audit, and social responsibility audit. The continuous deepening and expansion of the accountability content has enriched the modern audit forms. In our country, a specific accountability relationships existence and expand is the fundamental driving forces for the emergence and development of the economic responsibility audit. Economic responsibility audit, as a Chinese characteristics economic monitoring system, has become as a modern and innovative audit system in China. At present, the scope of economic responsibility audit has continuously expanded, has improved the level of the audit, and has deepened the contents of audit. All of above has played an important role for investigating and dealing with the responsibility of leading cadres within the scope of illegal waste and losses and other issues, strengthen the supervision and management of cadres from the source to prevent and control corruption, to strengthen the control and supervision of the power to help governments and enterprises to improve management, promote the implementation of scientific concept of development and establish a correct view of achievements, etc. But on the whole, our countrys economic responsibility audit is still in the exploration and improving stage. There are still many problems in our economic responsibility audit practice, the theory of economic responsibility audit-depth, systematic study is still lacking, yet to be deepening. Therefore, to choose the economic responsibility-oriented audit model as my study proposition is very necessary. In this dissertation, the study of economic responsibility-oriented audit model is to adapt to the expansion of accountability content in order to carry out a theoretical innovation. It is a new type of organization audit conduct of audit activities based on the accounting number-oriented, system-oriented and risk-oriented audit model, in order to more effectively carry out the audit work to provide a new option and thinking. The idea of this dissertation is: First of all, to build economic responsibility-oriented audit model as the subject for this study and establish the study framework of this model by reviewing and summarizing the history of economic responsibility audit and the evolution of oriented audit model, based on the accountabilitys connotation expansion as the logical starting point for this study, and also based on the theoretical innovation of our countrys economic responsibility audit practice. Secondly, to define the concept mode of economic responsibility-oriented audit model by using the theory of accountability as the basis for this study, and to expand the theoretical study of economic

responsibility-oriented audit model, which is formed by the nature of the audit, the audit assumptions, the audit objectives and the other elements, under the nature of the audit as this studys fundamental point. Finally, to deepen the applied study of economic responsibilityoriented audit model from three aspects, including the audit strategies choosing, audit risk prevention, and audit quality control. This dissertation includes: Introduction, Body, Conclusion, the main innovation point and follow-up study recommends, which is a total of seven chapters in three parts. The first part (Chapter 1): Introduction. This part introduces the background of this study, domestic and international literature review and the study paths .The second part: Body. This part is the core content of this dissertation, including Chapter 2 - Chapter 6 for totally 5 chapters.Chapter 2: The Origin and Structure of Economic Responsibility-oriented Audit Model. To build economic responsibility-oriented audit model as the subject for this study of this model by reviewing and summarizing the history of economic responsibility audit and the evolution of oriented audit model, based on the accountabilitys connotation expansion as the logical starting point for this study, and also based on the theoretical innovation of our countrys economic responsibility audit practice. And to and establish the study framework through the economic responsibility-oriented audit models connotations and its main features analysis. Chapter 3: Exploring the Basic Theory of Economic Responsibility-oriented Audit Model. Exploring the basic theory of economic responsibility-oriented audit model effectively from three aspects, including the audit strategies choosing, audit risk prevention, and audit quality control. It is by using accountability theory as the study theoretical basis; by using the definition of economic responsibility-oriented audit model as the concept mode; and by using the nature of the audit as this studys fundamental point. Chapter 4: The Audit Strategy Options under Economic Responsibility-oriented Audit Model. On the fundamentals of the audit strategys emphasis and specificity for the economic responsibility-oriented audit model analysis, the purpose of this chapter is how to design the audit program and audit process, how to choose and use audit methods, how to structure the audit evaluation index system and the other issues. And this study also explores the audit reports location, format and content. Chapter 5: How to Guard against the Risk of Audit under Economic Responsibility-oriented Audit Model. This chapter based on the resolution of audit risk model meaning under economic responsibility-oriented audit model, put forward an audit risk model under guidance of economic responsibility-oriented audit model. Many causes, characteristics and its negative effects of audit risk mode are exist under economic responsibility-oriented audit model, to the above situation, this study has proposed the overall strategy and specific measures for audit risk prevention. Chapter 6: Audit Quality Control under Economic Responsibility-oriented Audit Model. This chapter based on the audit quality analysis and the thought to explore the audit quality and its impact factors. It empirical analyzed some internal impact factors under economic responsibility-oriented audit model by utilizing statistical data of our countrys municipal economic responsibility audit. On this basis, it is further discussed in this chapter

about audit quality control elements and its meaning, to work out a basic countermeasure of audit quality control. The third part: Chapter 7, the conclusion of this study, the main innovation point and follow-up study recommends. This chapter summarized the study conclusions and the main innovation, analyzed of the limitations of this study, and further put forward a proposal in the direction of follow-up study. The main innovation of this dissertation is: . Economic responsibility-oriented audit model is proposed and established as the subject for study in this dissertation. At present, there is still lack of study on economic responsibilityoriented audit model at home and abroad. This study is a theoretical innovation on economic responsibility audit practice, which is to adapt to the expansion of accountability. The establishment of this audit model is matched perfectly with the nature of audit, which is to ensure that accountabilitys effective and comprehensive implementation. This is a major innovation in this dissertation. . This dissertation studied on the basic theory, the audit strategy, audit risk and audit quality exploring and systematically from theory to application and initially constructed economic responsibility-oriented audit model. Through this study, I attempt to put forward a number of theoretical and practical significance of an academic point of view: (1) Systematic studied economic responsibility-oriented audit model connotations and main features; (2) Further expanded the connotation of accountability to clearly define economic responsibility person, responsibility of conduct and of the report as the concept of three-in-one system under economic responsibility-oriented audit model; (3) analyzed the economic responsibility-oriented audit model based on the accountability as the theory; (4) Preliminarily explored how to choose the audit strategy, audit risk prevention, audit quality control and other specific applications under economic responsibility-oriented audit models. To combine a comprehensive analyze and comment on the situation of theoretical study on economic responsibility audit in our country, and provide important foundation for follow-up study. Also, this dissertation obtained valuable empirical evidence by analyzing empirically on the internal impact factors of affecting the economic responsibility audit quality through archival study.(1) I selected domestic study literature on economic responsibility audit, included in the Chinese Journal Full-text database from 1987 to 2007, and used the norms of study and statistical analysis method to combine a comprehensive review and comment on the main contents of theoretical study, viewpoints, methods, features and lack of study. According to those, this study is a relatively new attempt in our country.(2) This dissertation has selected statistical data of our countrys 2006 municipal economic responsibility audit, and used the software (Stata10) to analyze empirically on the internal impact factors of affecting the audit quality. It also provides a useful empirical evidence for audit quality control under economic responsibility-oriented audit model. Economic Integrity

Economic Guard Better Performance of Tax Department Auditing is beneficial for government. Tax officers accept the audited accounts. The assessment order can be issued without further clarification. There is saving of money and time due to audited accounts. The performance of tax officers is improved. Exact Revenue Amount Auditing is beneficial for government. The collection of revenue is possible at an early date. The people are allowed to deposit various kinds of taxes. The recovery of income is made at the start of the year. The government can start welfare project on the basis of total revenue collected. Progress of Economy Auditing is essential for government policies. The true fair view is stated in audited accounts. The stage of economic progress can be determined. The government can take measures to raise the rate of economic growth. Purchase of Private Business Auditing is helpful for government. The private business houses may not work in favour of general public. The government can take over such business units. The purchase price is decided on the basis of auditing of accounts. Sale of Government Business Auditing is useful for government. The policy can be framed on the basis of audition accounts. The management comes to know the value of business. The government can sell state owned unit to private sector. The bid price is settled on audited accounts. Inspectors The auditing is helpful for government. The auditing accounts show the fair value of all assets. The value of assets. The value of assets is the basis of tax. This issue can be settle through audited accounts. The auditors are experts in their field. They know all methods of property valuation. They can issue certified the government agencies for valuation of property. Insurers can Settle Claims Auditing is essential for insurers. The settlement of fire or marine insurance claims is easy through audited accounts. The policy holders and insurance company can settle actual loss of property. No Loss to Lenders Auditing is essential for lenders. The banks and other lenders ask the borrowers to submit audited accounts before granting loans. The audited accounts are helpful to check the trust worthiness of customers. Creditor are Protected Auditing is essential for creditors. They can know the true performance of their debtors. The

creditor can accept this promise only when he feels that debtor is reliable businessman. Auditor accounts provide basic information about reliability. Bidders Can Offer High Rate Auditing is helpful for bidders. Audited accounts provide information about net worth of any business. The people interested in purchasing the business can rely on such information. They know the fair value of business. They can offer reasonable price through open bidding. Better Pay to Employees Auditing is helpful for employees. They are interests in profits. Auditing accounting prove true and fair view of profit. The employees can demand higher pay, fringe benefits and participating in profits. Audit of accounts with the independent person help the employees to make settlement with the employers. Investors Can Take Decisions Auditing is helpful for inventors. The audited accounts can be used to calculate value of shares and other securities. The bargains power is given to the people who have money and they want earn income. They can protect their rights through reliable information.

What is honesty, Integrity, dedicate professionalism Integrity Public confidence in government is maintained and strengthened by auditors' performing their professional responsibilities with integrity. Integrity includes auditors' conducting their work with an attitude that is objective, fact-based, nonpartisan, and no ideological with regard to audited entities and users of the auditors' reports. Within the constraints of applicable confidentiality laws, rules, or policies, communications with the audited entity, those charged with governance, and the individuals contracting for or requesting the audit are expected to be honest, candid, and constructive. Making decisions consistent with the public interest of the program or activity under audit is an important part of the principle of integrity. In discharging their professional responsibilities, auditors may encounter conflicting pressures from management of the audited entity, various levels of government, and other likely users. Auditors may also encounter pressures to violate ethical principles to inappropriately achieve personal or organizational gain. In resolving those conflicts and pressures, acting with integrity means that auditors place priority on their responsibilities to the public interest. Functions of Integrity Auditor the Integrity Auditor have the following functions:

a) the primary oversight of those aspects of the functions of GRNSW that relate to stewards, drug testing and control and registration, b) providing advice to GRNSW on the matters referred to in paragraph (a), c) receiving and investigating complaints against racing officials in respect of the exercise of functions relating to greyhound racing, d) Such other functions as are conferred or imposed on the Integrity Auditor by or under this or any other Act. Inquiries and investigations by Integrity Auditor in relation to complaints A person may make a complaint to the Integrity Auditor in respect of the exercise of functions by a racing official relating to greyhound racing. On receiving a complaint from a person under this section, the Integrity Auditor must investigate the complaint with due diligence unless the Integrity Auditor considers that the complaint: a. is frivolous, vexatious or not made in good faith, or b. is trivial, or c. does not relate to the exercise of functions by a racing official in a corrupt, improper or unethical manner. If the Integrity Auditor decides to investigate a complaint, the Integrity Auditor must inform the racing official concerned of the substance of the complaint and give the racing official a reasonable opportunity to respond to it. The Integrity Auditor may, by notice in writing, require a racing official who is the subject of an investigation under this section to do one or more of the following: d. provide, in accordance with directions in the notice, such information verified by statutory declaration as, in the opinion of the Integrity Auditor, is relevant to the investigation and is specified in the notice, e. produce, in accordance with directions in the notice, such records as, in the opinion of the Integrity Auditor, are relevant to the investigation and permit examination of the records, the taking of extracts from them and the making of copies of them, f. authorize a person described in the notice to comply with a requirement of the kind referred to in paragraph (a) or (b),

g. furnish to the Integrity Auditor such authorizations and consents as the Integrity Auditor requires for the purpose of enabling the Integrity Auditor to obtain information (including financial and other confidential information) from other persons concerning the person under investigation. A person who complies with a requirement of a notice under subsection (4) does not on that account incur a liability to another person. A person must not fail to comply with a requirement of the Integrity Auditor contained in a notice under subsection (4).

Dedicate professionalism High expectations for the auditing profession include compliance with laws and regulations and avoidance of any conduct that might bring discredit to auditors' work, including actions that would cause an objective third party with knowledge of the relevant information to conclude that the auditors' work was professionally deficient. Professional behavior includes auditors' putting forth an honest effort in performance of their duties and professional services in accordance with the relevant technical and professional standards. Technology changing the world of auditing The evolution of computers changed auditing forever. The first electronic computers were analog devices that began in the 1920s and developed through World War II. These computers were used to perform complex mathematical computations such as integration. The 1940s brought the development of digital computers that used binary logic. With binary logic, it was now possible to express exact numerical values instead of using approximate analog quantities to approximate numerical values. In 1958, the Institute of Chartered Accountants issued a statement entitled Accounting by Electronic Methods. This statement referred to E.P.D. as he method of analyzing, marshaling, recording and reporting business information by means of equipment, the central feature of which is an electronic digital computer. Bookkeeping for accountant has been time consuming and in the 1950s accountants have looked around for new ways of processing this data. Punch card machines was the first move but they were not fast enough for their needs, the digital computer was the next choice for providing a faster and more detailed cost analysis. Accountants didnt change their ways overnight; changing over from manual system to computers took many years. Auditing in general was changed forever, as data once on paper was now on magnetic tape reels and later floppy disks. The detection of fraud was more difficult to discover when data could be easily erased or changed. Auditing

changed with the times as it always had. The discovery for new internal controls was needed, as these controls were important to make an audit successful and efficient. A computer system within a business with strong internal controls made an audit easier and resulted in more dependable financial statements. The computer of the 1970s could handle large amounts of data and process the information in a very short time. Computers made accounting jobs in general easier, with the computer handling the bookkeeping work. This freed up time so Accountants could focus on more important jobs. Conclusion In todays world; auditing has become an incorporated segment of the association. All association wants auditing not only for avoidance and recognition of fake but in addition for organizational effectiveness. Auditing plays an essential part to appropriately finish the accounting records and timely preparation of the consistent financial information. Internal audit moreover helps organization to defend the property and maintaining the arranged and effectively accomplish of the business including adherences to the management policies. The manner of auditing is becoming easier day by day because of using computer aided audit. The computer aided audit tools and technique software is simplifying and automating the audit process. The auditor is now able to find any kind of fraud or material misstatement through the use of CAATTs software. Government audit also helps the government to find whether the resources are use effectively and efficiently. They evaluate the data and directly report to the Comptroller and Audit general of Bangladesh. Also to guard the shareholder, creditor and supplier from any kind of fraud, every corporation must verify their financial report by an external auditor. The external auditor must be an independent man also has to be a member of the ICAB in Bangladesh. Audit is an old and powerful institution. It reduces information asymmetry and improves the quality of information for decision makers. Modern financial markets could not function without it. Despite these benefits, auditors made mistakes during the recent financial crisis. The box checking approach is a mistake that prevented auditors from recognizing bad lending practices. Had they been more conscientious, they could have called into question the bad lending practices that led to the housing bubble and crash that precipitated the crisis. In modern business advancement audit is one of the core factor to be considered. Because auditing provides support to the whole organization in such a way that it serves both the external and internal users. For internal users it provides information to manager to make judgment and for external user it provides guarantee that the financial report is all right and out of any kind of material misstatement.