Role of the Internal Auditor This research e

The earliest audits known concerned the manorial households of early Europe. In the manorial household, the auditor was a person of some importance; however, his importance was not recognized outside of the manor.

The relative obscurity of the early auditor and the relatively high profile of the contemporary auditor is a study in evolving contrast. As society demanded ever greater accountability of its institutions, the auditor was moved out of the manor house and into public view.

The methodology of auditing changes with the requirements placed on the auditor. When the objective of the audit was to account for the activities taking place within the household, the auditor's method required penny accountability. When the objective of the audit changed to the determination of the fairness of the financial position reflected by financial statements, the auditor's methods required the development of tests and relationships.

The auditing profession began to experience major change subsequent to 1850. Between 1850 and 1905, the auditing objective was expanded to include the detection of clerical error, in addition to the detection of fraud. During this perio

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ses and deceptions among members of the business and financial communities. The motives for a failure to disclose financial information are numerous. Basically, however, there exists a desire to create an appearance of financial stability and prosperity where either such conditions do not exist, or where the situation is such that those conditions may not exist in the near future. Behind the basic reason for a failure to disclose financial information are diverse motives. These motives include a desire to maintain the market price of a company's stock, the creation of an image of profitability as a means of favorably influencing potential lenders, to satisfy management greed and ego, and a desire to either maintain or create a demand for a company's stock so that management can dump the stock before any adverse information about the company surfaces. Perhaps in no other facet of accounting have the changes brought about by the increasing role of electronic data processing (EDP) been as great and caused as many problems for the professionals concerned as has occurred in auditing. The increasing role and presence of EDP in accounting creates significant concerns for auditors other than their need to audit computerized financia
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Approximate Word count = 1870
Approximate Pages = 7 (250 words per page)

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