Envalue the Auditor Independence Provisions - Essay Example

Only on StudentShare

Extract of sample
Envalue the Auditor Independence Provisions

This essay summarises the concepts, that are used today in the legal regulatory framework, and identifies the conceptual framework of auditor’s independence. Apart from this the regulations for auditor independence that also are discussed in the essay by the researcher, 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. Audit firms and auditor must maintain their independence for the reports of the auditors to be free from any external, personal and organisational impairment. There are various ideas and assumptions present regarding the future development of auditing in context of independence. In US the audit control procedure states that the audit reports should be reviewed by another company once in three years. The researcher mentiones that this essay discussed all those factors which were enough to discuss how auditors can keep aside their personal objectives and interests in order to support the quotes that have been mentioned at the beginning of this study. Auditors today are like examiners who check the annual performance of the companies in order to assist them in forecasting and decisions making. However, the researcher also concluds that if code of ethics and laws are not followed, then companies would function on wrong guidelines, and there are many examples that can be drawn from the recent financial crisis to describe how faulty judgement can lead to bankruptcy. ...Show more

Summary

The purpose of this essay 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…
Author : simwatsica
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Envalue the Auditor Independence Provisions"
with a personal 20% discount.
Find out more

Related Essays

Accounting for Leases and Accounting for Provisions.
At the start of a lease term, IAS-17 depicts that lessee should record the finance leases as liability as well as assets in the accounting books. In order to have the appropriate figure, the lessee is required to compare the fair value and the present value of the asset.
10 pages (2500 words) Assignment
Investment in single company shares and gilts
The dictionary defines the term Investment as ‘the commitment of money or capital to purchase financial instruments or other assets, in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument’ (www.yourdictionary.com).
12 pages (3000 words) Coursework
Recommendation Brief for an Internal Auditor
This paper intends to convince a client about the benefits of using an internal auditor. Functions of an Internal Auditor An internal auditor has an objective of assisting “all members of management in the effective discharge of their responsibilities, by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed” (Ridely, 2008, p.9).
3 pages (750 words) Essay
Provision of Non Audit Services by the Auditor to the Audit Client Is a Threat to Auditors' Independence
Literature Review 4 2.1 Non Audit Services of Auditors 4 2.2 Threat to Auditor’s Independence 5 2.3 Comparison between Non Audit Services and Other Threats to Auditor’s Independence 6 2.4 Effective Means of Strengthening Auditor Independence 8 3.Data Collection 9 4.Findings 9 5.Conclusion 10 References 11 1.
6 pages (1500 words) Essay
Why auditor must to be objective and independent?
Why auditor must be objective and independent? Issues such as fraud, misappropriation of company funds and misrepresentation of organizational financial statements are common in different types of the media across the globe. Both private and public companies significantly contribute to the growth and development of the economy in any country, hence; their financial statements ought to be closely audited in order to make sure that they are not characterised by falsehoods.
8 pages (2000 words) Essay
The Role of Safeguards in Strengthening Independence
The sovereignty of auditors are hampered by many of the factors against safeguards can be taken so that the audit performed is free from biasness. Audit independence is necessary for the auditors in order to ensure that the objectives of the auditors are satisfied.
4 pages (1000 words) Essay
The Role of Safeguards in Strengthening Independence
The purpose of auditor safeguards to independence is to reduce the threats that may impair the auditor’s opinion forming process. Three are different threats that occasion impairment on auditor’s objectivity such as the self-interest threats that include financial and personal interests (Basu, 2009).
5 pages (1250 words) Research Paper
The Role of Safeguards in Strengthening Independence
Mandatory auditor rotation is the act of compelling all financial organizations to adopt and engage a different auditor each financial year to avoid the preference of a single auditor. Often, the management prefers to hire the same auditors every year to ensure that they are able to manipulate them to provide audit results that conform to the will of the management (Chung 2004, p. 8).
4 pages (1000 words) Essay
Bonus Example writing assignment
The bonus target is set as a percentage of the employee’s salary and also depends on the employees’ salary grades; the higher the salary grade, the greater will be the bonus target. For the year 2013, normal bonus award amounts to
2 pages (500 words) Case Study
Troubled asset relief program
The Treasury implemented the rescue program at a time when the financial crisis was threatening to bring down the entire US financial system. The program received
6 pages (1500 words) Term Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT