Questions On Auditing And Professonal Practice

1996 Words8 Pages
Assignment

ACC305
Auditing and Professonal Practice

Name: Yue Xiao

ID: na20150562 Scenario One:
Answer:
A wide range of relationships and situations may create threats. At the point when a relationship or condition makes a risk, such a danger could bargain, or could be seen to trade off, an expert bookkeeper 's consistence with the key standards. A condition or relationship may make more than one risk, and a danger may influence consistence with more than one central rule. Dangers fall into one or a greater amount of the accompanying classes (Cimaglobal.com, 2016). Internal auditor independence refers to the internal audit staff and conducting internal audit activities, the impact of the internal audit objectivity state
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In this case, it is clear that if I conducted what CEO requested, is would be hard to maintain objectivity, which is to not allow bias, conflict of interest or undue influence of others to override professional or business judgments. When an individual of employment opportunities or other economic benefits auditors may be closely related to the person in charge of the audited entity, the threat would produce. Risk of breaching: It would cause me to lose auditing independence, right of access and necessary ethical behaviour code, which could possibly bring me to lose job of auditing.
2. Advocacy threats: Prohibition of business relationships, strict rules on referencing clients, and rotation of audit partners. To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards. When auditors confronted or perceived pressure from related groups, the threat of social pressure may arise. In this case, the pressure from CEO would cause threat. The auditor’s report shall state that the
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