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
Table of Contents 1. Introduction: 2 2. What is an Audit? 2 3. Importance of Auditor Independence: 2 • Financial Information Reliability: 3 • Financial Information Credibility: 3 • Value for Money of Audit Work: 3 • Threats to Professional Standards: 3 4. Fundamental Principles of Ethics: 3 • Integrity: 3 • Objectivity: 3 • Professional Competence and due care: 3 • Confidentiality: 4 • Professional Behaviour: 4 5. Threats to Auditor’s Independence: 4 • Self Interest Threats: 4 • Self Review Threats:
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
The Importance of External Auditor’s Independence According to Gillespie, Lewis and Hamilton (2004:221) an audit is: “a scrutiny of the accounts by a qualified auditor who carries out checks on the figures so as to establish whether the accounts show a true and fair view of the results and the financial position of the entity.” According to Wikipedia (2011a), auditor independence refers to “an attitude of mind characterized by integrity and an objective approach to the audit process”. Independent
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
III. Profession guidance on independence and objectivity IV. Consulting services: a challenge to audit independence? V. Independence vs. Objectivity VI. Conclusion VII. Bibliography I. Introduction The internal auditor occupies a unique position he or she is employed by the management but is also expected to review the conduct of management which can create significant tension since the internal auditor's independence from management is necessary for the auditor to objectively assess the
Reda Worked With: Ibtihal Slassi Fall 2013 1- Auditor independence refers to the disinterest from the internal and external parties that could influence the professional judgment of an auditor. In other words, auditor independence is the lack of any interest that may create a threat or a risk of material bias regarding the reliability of the financial statement. Furthermore, the main aim of auditor independence is to improve the consistency and the reliability of information that
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