North Face

Auditing Procedures Name Course Tutor Date SEC Working papers play a vital role in explaining the rationality of the audit report given by an auditor. These papers describe the audit report and all the procedures that were followed during the audit period (Kumar & Sharma, 2006). As such, these papers are seen as vital documents that must not be altered. Furthermore, any additional work done on the final report should also be accompanied by similar papers. Fiedelman failed to have additional working papers despite the process continuing after finalization. This meant that the integrity of the audit report had been compromised as there was no way of ascertaining that the required rules were followed. In addition, the lack of working papers for such changes meant that the rationale behind the changes was not provided. Since the report had already been finalized, any changes that were to be made on the document had to be justified. The lack of justification meant that the audit report had been corrupted. This was the basis for the sanction given to Fiedelman. Professionalism in auditing is a vital aspect that ensures that all audit reports reflect the true events that took place. According to Knapp (2008), Fiedelman failed to observe professionalism in his work. The audit report included various transactions that were in contrast to other reports by Deloitte the previous year. This meant that the auditor was unable to handle his tasks in a professional manner hence prompting the SEC to sanction him for his actions. Lack of professionalism can erode the credibility of an audit report and there is need, therefore, to always ensure that due diligence and procedure is followed. Justification for 3 year ban on Fiedelman The 3 year sanction given to Fiedelman by the SEC (Securities and Exchange Commission) was justified. The rules set out by the commission ensure that a person who is found to have been unprofessional may be terminated from working for the clients of the ...