Auditor Independence - 2

2 Problems with Auditors Objectivity and Independence The fundamental principle that requires the professional accountants to behave with professional integrity in their business relationships with clients, which sometimes they struggle and make great efforts to maintain their objectivity in their professional and business judgments. Objectivity is a mindset of professional accountants and on certain occasions, to preserve the objectivity professional accountants have to maintain an independent approach

2.2 Auditor Competence Auditor competence is related to the experience and education in the field of auditing (Power and Terziovski, 2007). Also is personal attributes of the auditor which enables to achieve superior performance (Lasmahadi, 2002). To achieve the competence first should begin with formal education which further explore through experience of audit work. The auditor should take the technical training which is cover the general education and technical aspects (Samagaio and Rodrigues

Questions One of the key roles of the external auditor is to protect the interest of the public. To achieve this, it is important for the public to trust and have confidence in the work of an auditor. It is crucial that auditors appear independent to the public in both fact and appearance. For this reason, it is the auditor’s responsibility to ensure that there are no personal or business

AUDITOR’S INDEPENDENCE AND ACCOUNTABILITY IN NIGERIA PUBLIC ENTERPRISE This study seeks to identify the determinants of auditors’ independence in public enterprises and determine the policy implications of lack of auditors’ independence in the public sector. The data for the research was primary and collected via questionnaire from the Nigerian Ports Authority Headquarters Lagos. The questionnaire responses were analyzed using the percentage method. The hypothesis was tested using

Existence. Obtain evidence that the securities are bona fide and held by Spillane or a responsible custodian. Occurrence. Obtain evidence that the loan transaction and securities purchase transactions actually took place during the year under audit. 2. Completeness. Obtain evidence that all the securities purchase transactions were recorded. 3. Rights. Obtain evidence that Spillane owned the securities. Obligation. Obtain evidence that $500,000 is the amount actually owed on the loan.

analyses the independence of the internal audit function through its relationship with management and the audit committee. Given the growing role of internal auditing in contemporary corporate governance and independence has gained renewed attention. INTRODUCTION The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns

auditor’s code of ethics because when a company goes bankrupt the auditor’s independence is questioned and shaken (Moore et al 2006). It will also show what legislative body governing auditors are doing because users of financial statement are searching for auditors whose obligations covers: report of correct records, assurance that the financial statement is of true and fair view, company guards against errors and fraud, auditors are abiding by the rules and so on (Percy 2007). In light of ethical principle

Over the years, regulators and practitioners raise concerns on auditor independence. The Sarbanes-Oxley Act of 2002 includes rules on auditor responsibility and independence. The PCAOB designed policies on auditors’ ethical behavior and independence. The AICPA Code of Professional Conduct contains Section 101 – Independence that describes requirements for the auditor during engagements. The regulators establish principles and standards of the accounting profession, but the number of financial scandals

Question 1 (2): Examples of Will’s exercise of professional skepticism in this case When testing the revenue, Will discovered one ticket revenue was marked as paid in cash in the receipt book, but it did not show up on the bank deposit. The amount is $320, quite small compared to $5000 that is considered be material on his job. Although Jess found it and her explanation was quite reasonable, he still maintained questioning mind of the bills received from Jess. First, he realized that the bills were

KPMG stands for Klynveld Peat Marwick Goerdeler, which was established in India in September 1993, and has rapidly built a significant competitive presence in the country. The firm operates from its offices in Mumbai, Pune, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Kochi, Chandigarh and Ahmedabad. It offers full range of services such as financial and business advisory, tax and regulatory and risk advisory services. In India, KPMG has a client base of over 2700 companies. The firm’s global approach