Oral Communication - Spring '19

FAST-NU Islamabad

WHY GOOD ACCOUNTANTS DO BAD AUDITS

MAHAM BILAL

18I-0183
 Oral Communication - Spring '19

FAST - NU Islamabad

OVERVIEW

The article under review today discusses why good accountants are
sometimes not so good at auditing.

SURPRISINGLY ENOUGH, THE PRIMARY REASON FOR

THIS IS NOT ALWAYS CONSCIOUS CORRUPTION !
 Oral Communication - Spring '19

FAST - NU Islamabad

WHY ARE WE
EVEN
LISTENING ?
All of us will choose varied career paths.
Human thought process remains consistent globally.
We need to be able to look into the soft side of situations.
Being able to subjectively analyse situations goes a long way.

A STITCH IN TIME SAVES NINE.

 Oral Communication - Spring '19

FAST - NU Islamabad

THESIS
STATEMENT
Unconscious bias is arguably the single most influential factor behind
inaccurate, biased audits that lead to major corruption scandals and
investors and employees resentment; therefore academic research
based legislation is one plausible way forward towards financial
corruption and providing investors and stakeholders a safer, healthier
playing field.
 Oral Communication - Spring '19

FAST-NU Islamabad

DISSECTING FURTHER
 Oral Communication - Spring '19

FAST - NU Islamabad

STRUCTURAL
VULNERABILITY
The very structure of accounting as a profession forms the very basis
for the problem under discussion. The writer says that the unconscious
biases in auditors’ minds are formed by none other than:

Ambiguity
Attachment
Approval
 Oral Communication - Spring '19

FAST - NU Islamabad

HUMAN
NATURE
The very way humans behave in certain scenarios also forms a reason
for good professionals producing poor audits. Some factors of the
human nature are discussed in the article:

Familiarity
Discounting
Escalation
 Oral Communication - Spring '19

FAST - NU Islamabad

RADICAL
REMEDIES
Considering how the inherent structure of accounting as a subject and
basic human nature adversely affect the credibility of the entire
auditing system, jeopardising stakeholders’ interests, the author has
suggested a few radical remedies to get ahead of the problems at
hand.

Barring auditors from providing tax consultancies.

Barring clients from firing auditors if an unfavourable report is
delivered.
Prohibiting clients from hiring accountants who have audited them.
 Oral Communication - Spring '19

FAST-NU Islamabad

THANK YOU.
QUESTIONS?