Audit Case

Auditing is an organization independent and objective oversight service activities, it uses a systematic, disciplined approach to review the business activities, internal control, risk management, legitimacy and effectiveness, and promote tissue to improve the management, helps organizations improve efficiency, achieve their goals.(Gramling, 2010). According to McKnight (2011) since reform and opening up of the audit carried out step by step, to promote the organization to operate and improve governance, strengthen internal controls to prevent operational risks and achieve development goals and strengthening of good governance has played an important role, but there are still leadership system is not perfect, imperfect relevant laws and regulations restricting the development of auditing issues. Give full play to the role of audit, the need to focus on the following aspects. (Herda, 2010)

During the high turbulence of business operating era, the world of economy is a roller coaster. Information and decision making is getting harder is yet due to sudden changes with the external environment and businesses are getting harder to gain control towards this alteration. Some of the famous example such as Bear Stearn (acquisition by JP Morgan in March, 2008) which had some form of assistant by the government for a bailout.

Now, the question here is why for such company not able to see thing coming or did the firm itself really made some mistake and caused the miserable period of time? There are some arguments from different school. Some experts form opinions that the company was mismanaged by their leaders on taking up some risk. (Herda, 2010) Others also commented that governance was lacking. Setting aside all of that, professionals