Auditing and Assurance Services Uncertainty and Assurance

Question: Describe about the Auditing and Assurance Services for Uncertainty and Assurance. Answer: 1: Pseudodoxia Epidemica is a theory, which lays greater stress on common error. Thomas Browne has proposed this theory with an intention of repudiating the errors and superstitions during his era. The person has identified three major determinants for laying down the theory. These major determinants comprise of the following: The authority of the previous author Cause behind the act Pragmatic experience According to Browne, there is urgent need to frame any hypothesis before arriving at any sort of inference (Arens, Elder Beasley, 2012).In order to validate the statement, Thomas Browne has gathered some relevant facts and experience from real life. However, as argued by Christensen, Glover Wood (2013), the facts gathered could be manipulated to obtain favourable results for laying down a specific proposition. In the particular study, Browne has focused on accumulating some pragmatic evidence, which is essential to support the reliability and validity of the proposed theory. As per the opinion of Thomas Browne, accounting is required to undergo through experimentation before it is applied to any organisation. This is because every organisation has a tendency to make common errors by making decisions based on the real life data and information (Gramling et al., 2012). Hence, the person has suggested conducting a survey process after critically reviewing this error, which occurs with many organisations. Hence, this theory aims to reduce the accounting errors of the organisations through accumulation of data based on real life incidents (Hay, Knechel Willekens, 2014). In addition, according to Thomas Browne, errors of an organisation could arise out of the fraudulent or unscrupulous activities conducted on the part of the accountants or managers. The errors could occur in several forms, one such example is the misapprehension of any accounting theory, which is wrongly applied in the books of account of the organisation. This might result in inaccurate recording of data, which negatively influences the financial position of the organisation (Humphrey, Samsonova Siddiqui, 2013). Therefore, as per the viewpoint of Thomas Browne, it is necessary to review the past incidents of the organisation for sound decision-making. With relevance to both accounting and auditing, the first determinant proposes verifying the relevant accounting principles before making their applicability in the organisation (Louwers et al., 2013). Secondly, before adding any theory or concept in the accounting standards of the organisation, the presence of a justified reason is crucial in order to avoid accounting errors. In the last stage, it is essential to review the past incidents of the organisation or conduction of experiments through which the accounting decision could be made. In this context, Marques, Santos Santos (2013) stated that this would help in better organisational decisions in future, as the chance of creation of accounting issues is minimised. From the viewpoint of auditing, it is necessary to make accurate and justified dissection of the accounting principles to integrate the former with the latter (Reding et al., 2013). Thus, verification of the accounting concepts is crucial in order to conduct an effective audit evaluation. With the help of auditing, the organisations would be able to track any error occurred in the accounting systems and accordingly, make recommendations to ensure transparency. In addition, audit ensures the directors of the organisations to minimise the scope for faulty accounting procedures (Hay, Knechel Willekens, 2014).According to Thomas Browne, audit ensures the shareholders of the organisations regarding the accounting figures and values. This would help in winning their trust and enforce transparency in the accounting disclosures. Finally, with the help of auditing, the business owners could get an overview of the existing business operations, expectation of the margins and ways of accomplishing them. Thus, Thomas Browne has inferred that audit evaluation is necessary to minimise accounting errors and ensure organisational transparency. References and Bibliographies: Arens, A. A., Elder, R. J., Beasley, M. S. (2012).Auditing and assurance services: an integrated approach. Prentice Hall. Christensen, B. E., Glover, S. M., Wood, D. A. (2013). Extreme estimation uncertainty and audit assurance.Current Issues in Auditing,7(1), 36-42. Gramling, A., Johnstone, K. M., Jubb, C., Rittenberg, L. E. (2012). Auditing and Assurance: A Business Risk Approach. Cengage Learning Australia. Hay, D., Knechel, W. R., Willekens, M. (2014).The Routledge Companion to Auditing. Routledge. Humphrey, C., Samsonova, A., Siddiqui, J. (2013). Auditing, Regulation and the Persistence of the Expectations Gap.The Routledge Companion to Accounting, Reporting and Regulation, 163. Louwers, T. J., Ramsay, R. J., Sinason, D. H., Strawser, J. R., Thibodeau, J. C. (2013).Auditing and assurance services. New York, NY: McGraw-Hill/Irwin. Marques, R. P., Santos, H., Santos, C. (2013). A conceptual model for evaluating systems with continuous assurance services.Procedia Technology,9, 304-309. Reding, K. R., Sobel, P. J., Anderson, U. L., Head, M. J., Ramamoorti, S., Salamasick, M., Riddle, C. (2013).Internal Auditing: Assurance Advisory Services. Stuart, I. (2012).Auditing and assurance services: an applied approach. McGraw-Hill/Irwin. William Jr, M., Glover, S., Prawitt, D. (2016). Auditing and Assurance Services: A Systematic Approach.Auditing and Assurance Services: A Systematic Approach.