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5. When assessing audit risk, should auditors consider the type and number of third parties that may ultimately rely on the client¡¦s financial statements?

The factor that plays the greatest role in determining auditor independence is independence in mind. Auditors may or may not appear to be independent, but if the auditor is truly independent in mind, then the auditor can remain objective and unbiased. The profession should consider tightening the Code of Professional Conduct to address the issue of an audit team member knowing a close friend that holds any position at the audit client. If this scenario arises, the firm can still audit the client, but the audit member with the close relationship won’t be able to be on the audit team.

Independent audit in turn makes the financial statements more credible and reliable source of information

Proper conduct and ethical behavior are important, because auditors are party to confidential information and it is important this trust not be abused. This essay discusses the purpose of the American Institute of Certified Public Accountants (AICPA) and delves into the definitions of the six principles of the Code. It explores to whom this Code applies and what should be considered its key principle. The next

The conerstones of the guidance provided by these early bodies remain as today's foundation of ethical behavior—objectivity, intregrity, trust, and, most importantly, independence. Independence is not only a condition of mind, but one of character as well. As a professionall, a

The objectivity and independence principle will be the most challenging for me when I become a member of the AICPA and start my career in public accounting. I am very friendly and keen to make connections. I enjoy providing help as well as asking questions to learn from others’ ideas. I also find it hard to say no to requests from my friends. These characteristics can generate threats for me to stay objective and independent along my career path.

AICPA Code of Professional Conduct is the code of conduct that required each member of the organization to follow rigorously and act with integrity, objectivity, due care, competence, fully disclose any conflicts of interest (and obtain client consent if a conflict exists), maintain client confidentiality, disclose to the client any commission or referral fees, and serve the public interest when providing financial services. Accountants are relied upon to be trustworthy and maintain high ethical standards. It is because of the nature of the profession that puts them in a position of trust with people who rely on their professional judgment and guidance in making decisions. These decisions are extremely important in accounting

Accountants and auditors are often faced with having to make decisions that bring ethics into question. The American Institute of Certified Public Accountants (AICPA) sets the standards for professional conduct that dictates what accountants are allowed to do and what they are not allowed to do. However, issues do arise that have not been addressed by the AICPA and when this occurs it is up to management to use their best judgment to make a determination about the ethical implications of their actions (Allen, 2011).

This title consists of 9 sections that instruct in the behavior of auditing firms and establish guidelines for external auditor independence. It also sets restrictions for clients outside of auditing boundaries and requirements for audit partner rotation.

The last aspect, programming independence, covers the need of the auditor to have absolutely no interference from their audit client in how the audit is run. An audit client cannot attempt to control any aspects of the audit such as changing or restricting any procedures an auditor may want to perform. The audit client may not try to control any of the audit work and may not put any type of restrictions on how many auditors may come to the location to perform fieldwork.

Explain the issues which limit the independence of the internal audit department in Flyjet Co. Recommend a way of overcoming each issue.

Independence is extremely important, necessary, and appropriate because without an independent IAD, IAD’s objective of adding values and improving business operations cannot be achieved. Independence is also a key component in Attribute Standard. Accountability section states the chief audit executive’s responsibility to the management and audit committee. It is necessary and appropriate because it leads to significant communication between the CAE and top management and between the CAE and the Board; it also helps ensure that the standards and requirement of the internal auditing function is achieved.

3 pillars of effective internal audit services- independence and objectivitiy, proficiency, and due professional care.

Throughout the years, banks, shareholders, possible investors and creditors always relied on the financial statements produced by a company. Since the management of a company is producing these documents it has been assumed that the managers may act dishonestly so that their performance looks better. To monitor the company’s performance better the directors along with the shareholders employ external auditors to check all these financial statements for both intentional and unintentional errors. Therefore, external auditors have no motivation to produce dishonest reports, hence they are regarded as being truly independent. But can they actually be independent when their

The aim of this essay is to study the function of external auditors in order to analyze why it is important to be independent. The primary mission of external auditors is to review and evaluate all the financial records of a company or corporation. They provide an objective opinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company in the world. In order to maintain and increase