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envalue the Auditor Independence Provisions
Finance & Accounting
Pages 6 (1506 words)
Envalue the Auditor Independence Provisions Introduction The purpose of this study is to discuss the theoretical framework associated with auditor’s independence, code of conduct and ethics, which is based on the FEE Paper Comparison International Ethics Standards Board for Accountants (IESBA) Code of Ethics that says “An individual’s objectivity must be beyond question when conducting and reporting on a statutory Audit.” This is applicable when auditors themselves act as statutory auditor, or when they are auditing on behalf of an auditing firm.
The audit firms generally try to maintain a quality control system in order to safeguard the independence of the auditors. For achieving this objective, EC Recommendation (ECR), Statutory Audit Directive (SAD), which is also collectively regarded as European Union (EU) provision, and IESBA Code offer guidance and requirements for audit firms and statutory auditors, so that they can follow those standards (Federation of European Accountants, 2013). This study would summarise the concepts that are used in the legal regulatory framework, and would identify the conceptual framework of auditor’s independence. Apart from this the regulations for auditor independence would also be discussed, with respect to European Union, as this will assist in analysing how the auditors can keep their personal interest aside and focus towards an unbiased and flawless audit report. The Conceptual Framework of Auditor Independence Auditor independence signifies independence of the external and the internal auditors from the stakeholders or those who have financial interest in the company that is being audited. ...
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