Required: Critically examine the above statement by analysing the role of the auditor and the role of the board of directors in the preparation of financial statements and the prevention of fraud. In your answer, you should also examine the actions taken by the regulatory authorities and the government in the UK in response to these scandals.
Context
Good essays need to include the following points: (but not be limited to)
Board of Directors: • Appointment of Directors • Roles and Responsibilities (i.e. set up the strategy etc) • Please do not refer to corporate governance issues   Auditors: • Auditor’s role and responsibilities • Auditor’s independence • Auditor’s rotation • Audit quality   Government Intervention (i.e. UK Act 2006) • Description of the act • Advantages and Disadvantages • Critical evaluation of its usefulness
Good essays will be rewarded for not just describing the roles of the relevant bodies but also analysing their role in the prevention of fraudulent act