Assessment 1 Essay

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Assessment 1 Auditing- AC60001E 2014-15
The American Institute of Certified Public Accountants which is responsible for the setting of auditing standards in the United States of America formed two Commissions to review different aspects of auditing and financial reporting. The work of these commissions led to significant developments in auditing.

The Commission on Auditors' Responsibilities (commonly referred to as the Cohen Commission) was established by the American Institute of Certified Public Accountants in the fall of 1974 to examine auditors role in the society and to develop appropriate responsibilities of independent auditors.

The National Commission on Fraudulent Financial Reporting (commonly referred to as the Treadway Commission) was formed in 1984 to identify factors that lead to fraudulent financial reporting and recommend measures to reduce its incidence.

For this assessment you are required to:
1) Summarize the recommendations of the Cohen Commission. 600 words
2) Summarize the recommendations of the Treadway commission 600 words
3) Identify and briefly discuss the auditing standards which appear to address the recommendations of the two commissions. 800 words

Marking Guide
The two commissions referred to above have had significant influence on the development of auditing. And to be able understand contemporary auditing it is important to be familiar with the work of the two commissions.
You are expected to study the two commission’s reports and summarize their main recommendations. It is your understanding of the recommendations which is important and I recommend that you summarise the recommendations in the form two separate lists-one for

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