Auditing as We Enter the 21st Century--What New Challenges Will Have to be Met.

Abstract We stand on the threshold of the 21st century, looking back on a period of great progress and ahead to new challenges to be met by our profession. Predicting the future is always a risky proposition, but if the past is prologue, there are exciting times ahead. In all likelihood, we will be auditing forecasts in corporate financial statements; auditing models of government programs; and rendering opinions on the reliability o f factors used in estimating the cost of these programs before they are started. There will be increased emphasis on audits directed toward determining the economy, efficiency and effectiveness of operations within corporations; and we expect that auditors will be called upon to help evaluate the costs and benefits involved in "social accounting." Challenges await us in auditing paperless transactions, reporting on internal controls, and auditing to prevent and detect fraud. The author believes that we can meet these challenges, and that with hard work, dedication, and more extensive education, the auditing profession will live up to the expectations of the public in the coming century.