Question

b. What is auditor independence and why is it so important? (4 marks)

b. What is auditor independence and why is it so important?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It refers to the independence of the internal auditor or the external auditor from parties that may have a financial interest in the business being audited. It states that the auditor should carry out his or her work freely and in an objective manner.

It is important so that auditor's opinion can be impartial, unbiased and free from any undue influence to override the professional judgement of the professional accounting. It is a legal obligation for an external auditor to be independent.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
the meaning of external auditor independence
the meaning of external auditor independence
Meaning of external auditor independence
Meaning of external auditor independence
udit independence is important so that auditor’s opinion can be unbiased, free from undue influence or...
udit independence is important so that auditor’s opinion can be unbiased, free from undue influence or conflicts of interest to override The professional judgement. Explain the concept of independence and discuss the broad categories of threats to independence.
Why is it important that an auditor develop an expectation of the account balance when performing...
Why is it important that an auditor develop an expectation of the account balance when performing substantive analytical procedures about the reasonableness of an account balance?  What are the audit documentation requirements when performing a substantive and the analytical procedure?
What circumstances could cause impairment of internal audit function independence or internal auditor objectivity? How should...
What circumstances could cause impairment of internal audit function independence or internal auditor objectivity? How should an identified impairment be handled? Internal auditing: assurance and advisory services 4th edition.
Why is E0 (epsilon naught) so important? What can it be used for? Why is it...
Why is E0 (epsilon naught) so important? What can it be used for? Why is it valuabke to us?
Which condition for multiple regression (i.e., linearity, independence, normality, and equal variance) is most important? Why?
Which condition for multiple regression (i.e., linearity, independence, normality, and equal variance) is most important? Why?
What is intersectionality? Why is it so important to global women’s studies?
What is intersectionality? Why is it so important to global women’s studies?
What was Republican Motherhood and why was it so important to the health of the country
What was Republican Motherhood and why was it so important to the health of the country
What is the "time value money" ?. Why is it so important?. B) Explain the relationship...
What is the "time value money" ?. Why is it so important?. B) Explain the relationship between the discount and compound processes. C) What is an annuity? Provide examples of annuities and distinguish between an annuity and a perpetuity. D) Explain the effect of inflation on the rate of return. E) Explain the term "term structure of interest rates". F) What is the meaning of "beta"? How is it used to calculate "k", the rate of return required by the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT