Oral Communication - Spring '19

Islamabad
FAST-NU

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

Islamabad
FAST-NU

DISSECTING
FURTHER
 Oral Communication - Spring '19

FAST - NU Islamabad

STRUCTURAL
VULNERABILIT
Y
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

Islamabad
FAST-NU

THANK YOU.
QUESTIONS?