The Rule Of Generally Accepted Auditing Standards

911 WordsMar 15, 20154 Pages
This paper examines one of the rule of Generally Accepted Auditing Standards (GAAS), independence and discuss the shortcomings in the GAAS. Independence can be effect by many different reasons. Auditors might face challenges in applying concepts and interpretations under circumstances where in conflict with the auditor’s relationship with the audit client. To improve audit quality and protect investors’ interest, PCAOB reviews the work of public accounting firms that do audits of more than 100 public companies annually. The PCAOB’s 2008 and 2009 Reports of PricewaterhouseCoopers LLP (PWC) will be used in this paper as examples of shortcomings of time and resources devoted during an audit to bring out efficient work. One of the standards in Generally Accepted Auditing Standards is that the auditor must maintain independence in mental attitude in all matters relating to the audit. (AICPA, AU §150.09, para. 4) Independence is an essential standard for all auditors to maintain and when take on new roles. The public trusts the auditors with their proficiency and knowledge to bring more confidence to the public in reviewing companies’ financials. The accountants and auditors are consider trustworthy professionals. There are many studies that question accountants and auditors’ responsibility. Independence is one of the main challenges today and the second challenge is the inefficient functioning of account firms. The AICPA’s rule on independence prevents auditors from

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