Essay Business Research Account

7383 Words Dec 10th, 2012 30 Pages
Literature Review
Original Ideals and Postulates
The key principle of audit is that it should be a professional and objective process. An approach that has been assumed by Flint, (1971), and a theme that is strongly supported by the majority of the literature written on this subject. This idea is supported by Mautz and Sharaf (1961), who created an outline of standards that auditors should work, to in order to achieve the highest level of professionalism. To be able to achieve this level of professionalism it can be seen that a conceptual framework must be in place, it was for this reason Mautz and Sharaf created eight postulates as a foundation for a framework. They created their postulates based on a ‘...careful study of the nature and
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The question would then be who would set this legislation, would it be the auditors themselves, or an independent body? The seventh postulate looks at the idea that the audit must create both economic and social benefit, ‘...financial and other statements and data which are audited must have an added utility which more than matches the cost...’ (Flint, 1988 pg 39). This idea of added benefit is one that can be seen to be in high demand with the emergence of new types of audit such as value for money audit that specifically looks at methods of improving the company’s efficiency. Flints idea of audit having a much wider affect on society can be seen to be very much the case in the modern environment, as we now have social audits, environmental audits and a whole host of others as Michael Power states ‘...Britain has become an ‘audit society...’ (1994, pg 1,).
After having looked at the foundation postulates that both Mautz and Sharaf and Flint developed in order to create conceptual frameworks, Mautz and Sharaf came up with five primary concepts, evidence, due audit care, fair presentation, independence

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Student Name Business Research and Project and ethical conduct. They then invited other writers to contribute to the framework. Flint in 1988 then attempted to build on the concepts when he created nine fundamental concepts which he then separated into three

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