The main theme of this thesis is regarding a phenomenon within the Danish audit industry referred to as “stay and sign”. The thesis is a theoretical analysis of the expression based on the Danish regulation and an empirical analysis of the expression based on a survey among approved Danish auditors combined with an interview with the Danish law professor Lars Bo Langsted, University of Aalborg. The purpose of the thesis is to clarify how well known the expression is or not amongst Danish auditors. Furthermore, the task of the thesis is also to find out the Danish auditors knowledge about the expression regarding Danish regulation and the international standards made by the International Federation of Accountants. The expression “stay and sign” does not appear neither in the Danish regulation nor in the international standards. However, in the Danish regulation the inverted phenomena exists where the auditor resigns before finishing the audit and thereby before the final statement is given. The Danish regulation is only allowing the auditor to resign before finishing the audit if the resignation is accordance with generally accepted auditing standards, in Danish: “god revisorskik”. According to the theoretical analysis of the Danish regulations, international standards and other generally accepted auditing standards, I found that it is difficult to resign before the audit has been finished. Only in a few cases, the auditor has to resign due to the auditor’s lack of education or authorization. In cases where the auditor is disagreeing with the client, resignation is not an option because the auditor is the representative of the public interest whom for the main purpose is to inform the stakeholders. The few cases where the auditor legally can resign prematurely, is when the clients are unable to pay the audit fees. The base of the empirical analysis is a survey responded by approved auditors regarding their opinions and experiences with resignation. 319 Danish approved auditors have responded. 36% of the respondents have never resigned before finishing the audit. Based on the theoretical analysis, my expectation was that a whole lot more of the respondents never had resigned prematurely, but the empirical analysis showing nonetheless than 64% had resigned before finishing the audit. Based on the survey results, I can conclude that Danish auditors are not quite sure about when they have the option resigning prematurely. The survey is showing that the auditors mostly has resigned due to disagreement about the audit fees, lack of payment from the client regarding the audit fee or in case of cooperating problems with the client. The respondents do not describe cooperation problems further, but it seems that resigning because of cooperation problems not is according to the generally accepted auditing standards. Professor Lars Bo Langsted is agreeing that the Danish audit industry needs more specific guidelines regarding when and how the auditor must behave in case of cooperation problems.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|