Auditors were implicated in a lot of the primary causes of the crisis: bad lending and investing decisions; a lack of understanding of risk; and flaws in the credit-rating system. Auditing is not meant to stop companies from making dumb business movesjust to make sure those moves are properly disclosed. Over the last two decades, auditors have been facing tremendous pressure from the society at large. Many major scandals that took place worldwide such as World Com, Enron Corporation, Satyam Corporation, Lehman Brothers and recent cases such Well Fargo and Serba Dinamik group, have put auditors into unnecessary limelight and criticism. Accounting firms were at the limelight of the last financial crisis, when companies such as Enron Corp. and WorldCom Inc. collapsed amid scandals where accounting rules /standards were abused by professional accountants As public pressure was enormous and with the view of public interest, IFRS was developed with the objective of providing, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles. In view of the issues raised in Enron & WorldCom , US government has enacted Sarbanes Oxley Act 2002, to address the issue concerning the independence of external auditors and prevent fraud or errors in their financial statements to serve the public interest and strengthen the accounting profession, auditors in Malaysia are guided by the ethical principles of integrity and objectivity. Debates on the future of audit and the skills needed to meet that vision is never ending. Among other issues, audit fee is also an area of concern. Critics have the opinion that audit fees in in one way or another can lead to the threat of auditors independent. Critics have also suggested that the following specific areas will require significant attention if the capabilities of auditors are to live up to future expectation of the society: + Increased competition in auditing industry Additional complexities of nature of client business Information technology in view of Industrial Revolution 4 Enhance corporate governance and risk management Extended external assurance services The need to warn of corporate collapse and raise going concern problems The responsibilities to detect fraud

Choose any FIVE (5) issues from the above and critically discuss (with own opinion) the future of auditing, including the knowledge and skills needs of those currently entering the profession and explain how an academic and training programme best might meet the future requirements as outlined above. (25 marks) (5 issues @ 4 marks each = 20 marks) (5 points on the explanation of academic training program @ 1 mark each = 5 marks)