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Unformatted text preview: As a result, the agent agrees to be monitored as part of his/her employment contract. Auditing appears to be the most cost-effective form of monitoring. (Messier, 2011) The empirical evidence suggests auditing was demanded prior to government regulation. In 1926, independent auditors audited 82 percent of the companies on the New York Stock Exchange. Additionally, many private companies and municipalities not subject to government regulations such as the Securities Act of 1933 and Securities Exchange Act of 1934 also demand auditing. (Messier, 2011) Reference: Glover, Steven m., Messier, William F., & Prawitt, Douglas F., (September, 2011) Auditing and Assurance Services: A Systematic Approach. The McGraw-Hill Companies, Inc., New York, NY...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 470 taught by Professor Kwong during the Spring '11 term at Franklin.
- Spring '11