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What is the concept of civic responsibility?

What is the substance-over-form concept in auditing, and what exactly does it require? What responsibility do auditors have when a client violates this principle?

  • Answer:

    Substance over form emphasizes the economic substance of an event even though its legal form may provide a different result. I saw one definition that gave this example...If it is a goat in substance but in its legal form it is a dog, it is still a goat! An auditors responsibility is to inform the audit partner of the violation, inform the audit committee of the violation, document the violation in detail, and then the firm must decide whether to continue the engagement if the client does not adhere to GAAP. I am sure there is more to this answer but, at 6 in the morning this is all I can think of.

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substance over form is an accounting principle use to ensure that the finacial statments reflects the complet relevant and accurate picture of the transactions and events.the responsibility is to inform the audit partner of the violation

esu audit

What is the substance-over-form concept in auditing, and what exactly does it require? What responsibility do auditors have when a client violates this principle?

studybudy

anonymous, i totally agree with you.for me,auditors need to act as whistleblower if the client didn't accept our recommendation.

hiong86

substance over form is a principle that required an auditor/accountant to look deeply about what nature of the transaction is instead of its legality form.. as an auditor, we have to communicate of this matter to our spv or partner. some of the companies are favorable to used this principle for accoutning smooth or tax avoidance.. such a lease transaction etc. thats all my answer, sorry if its not likely what you are expected, coz im still a college student :p

bowwiiee

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