The importance

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Prepared by: Gabriela Bacigalupo, 1099953 Monica Jorge, 3622098 Youthalyn Mair-Pryce, 3622089
Reviewed by: Gabriela Bacigalupo, 1099953 Monica Jorge, 3622098 Youthalyn Mair-Pryce, 3622089

ACG 4651 – Fall 2013 Section 04
September 17, 2013 – Case #1: The importance of being independent (by Deloitte) Discussion 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
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This helps to eliminate conflict of interest and freely allows auditors to exercise professional skepticism. Employment relations dictate that an auditor cannot be assigned to an audit of which a family member works in an executive position or a position of influence. This has to be disclosed so that information users do not have reason to believe that the auditor’s judgment was impaired.

The audit firm has its responsibility also – that of not providing accounting or bookkeeping services to any client it audits. Neither can the firm represent the client in a legal matter. This encourages stability and boost user confidence in the market. This covers the area of scope of interest. There should be no fee arrangements made to pay the audit firm based on results of advice it provides to a client. The only payment arrangements should be related to the audit fees charged to the client.

Comments

It is crucial that auditors appear independent to the public in both fact and appearance.
Brett Rixom - 2 months ago
Great point.
Brett Rixom - 2 months ago fact and appearance
Brett Rixom - 2 months ago
A brief explanation of both of these would be nice.
Brett Rixom - 2 months ago
It is not the nature of the relationship, but more importantly the position that the person has within the firm.
Brett Rixom - 2 months ago
The question did not specify what your position in the firm is. Do you think it would make
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