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…
The audit committee and the Charter of Audit usually offers independence of code of ethics and management of the company which assist in guiding the clients, third parties or suppliers on theories and concepts of independence (Federation of European Accountants, 2013). The independence of external auditors signifies freedom from those parties that have increase in the consequence published in the financial statement of the entity. The external auditors should be supported by the Audit committee of the company, and reference should be drawn from the public accounting codes and standards. The external and internal concerns are complicated when the nominally self-regulating divisions of the company offer consulting and auditing services. In order to solve this complication, Sarbanes – Oxley Act of 2002 is a legal solution. In case of statutory audit the most significant principle is regarded as objectivity. Before considering any non-assurance or assurance engagement, audit or entering into any relationship with the client, the auditor should consider all the threats to their independence that might hinder principle of objectivity (ICISA, 2004). Regulations in the European Union There are various regulations within EU in relation to auditor independence. The major enforcement in case of auditor independence is directed through the Companies Act of 1985, and Companies Act of 1989. The Companies Act of 1985 states that it the accountability of the shareholders to appoint auditors rather than the directors at the annual general meeting. This theory has been stated so that the directors cannot influence the auditors by...
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. ...
Cite this document
(“Envalue the Auditor Independence Provisions Essay”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/97309-envalue-the-auditor-independence-provisions
(Envalue the Auditor Independence Provisions Essay)
“Envalue the Auditor Independence Provisions Essay”, n.d. https://studentshare.net/finance-accounting/97309-envalue-the-auditor-independence-provisions.
Week I Individual Assignment It is imperative for companies to have clean accounting records due to the fact that stakeholders expect financial statements that are free of fraud and material error. At first glance it is apparent that your organization has an accounting system that is out of control.
Specifically, the responsibilities of an auditor involve the full participation of the professional to identify the indication of inefficiency and ineptness in the financial statement of an organisation and confront receptive issues related to the inefficiency.
Running head: KOSOVO INDEPENDENCE Kosovo Independence Insert Name Insert Grade Course Insert Tutor’s Name October 29, 2011 Kosovo Independence Introduction Edmund Burke conceived society as being made up of complex web-work of institutions that undergo continuous growth (Raeder 1).
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.
However the fact of this auditor to be independent is clearly the most important factor here, and independence is defined as being the "ability to withstand pressure from management influence when conducting an audit or providing audit-related services, so that one's professional integrity is not compromised." (Gay & Simnett, 2003, p.745).
There were increased efforts to declare the 13 states independence from British rule and this led to the formation of a committee by congress to draft the declaration, among those selected by congress included former United States president Thomas Jefferson and John Adams who are considered to have played a major role in the achievement of independence.
It can be clearly seen that if audit is to be carried out in free and objective manner the auditors must be independent in fact (actual independence) and if their opinions are to be accepted auditors must also appear to be independent.
Corporate world has time and again been rocked by scandals and sudden failures, of these, Enron & World Tel are considered water shed cases due to the sheer size of their failure.
Human Rights are rights that belong to an human being or group of individuals as a result of being human. They refer to a broad range of values or capabilities thought to improve human agency and affirmed to be universal in character, in a number of sense evenly claimed for all human beings (Previts, G.
ed to ensure that corporate management adhere to professional ethics as well as compel audit firms to be independent to reflect the true financial status of corporates.
Prior to 2002, Investors had witnessed the collapse of giant firms as a result of the discovery of corporate
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Envalue the Auditor Independence Provisions for FREE!