Safeguard of auditor independence (i)Established An Audit Committee We support the given measure as Sarbanes-Oxley Act of 2002‚ Section 204 requires auditors reports to audit committee (www.sarbanes-oxley.com).First‚ such committee is independent non-executive directors provide auditors an independent point of reference than executive directors of the company. Second‚ it enhancing the independence of auditors by provides a direct channel of communication between top management and the auditors. As such
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The Impossibility of Auditor Independence Intentional collusion of auditors and their clients is is not the major cause of Audit integrity. Most of the times‚ auditors find it difficult to become objective. In 1992‚ Phar-Mor‚ Inc. drugstore in the United States seeking a court protection from corruption failed a court case. The previous auditors‚ Coopers & Lybrand‚ Phar-Mor’s failed to state inventory inflation and manipulation of finanicial that lead to overstating of $985 million earnings
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THE NORTH FACE‚ INC.: An analysis of Instructional Case Focusing on Ethical Issues Involving Financial Accountants and Independent Auditors Questions 1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an “immaterial” effect on the given set of financial statements? Defend your answer. To confirm that materiality is a pervasive concept in auditing‚ simply
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Introduction Independence is a fundamental to the reliability of auditors’ reports. It is an attitude of mind characterized by integrity and an objective approach to professional works. A professional auditor should work both independent and seen to be so. Nowadays‚ but‚ the trend of providing non-audit services to audit clients seem to be sweeping accounting firms all over the world; impacts of independence impairment caused by this trend should not be ignored. The Meaning of Independence The
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The first argument that supports Affirmative Action is about correcting the testing gap. According to some studies‚ black and hispanic students score lower as a whole than white students on standardized tests‚ like the SAT. Sandel gives the example of a student who attends a poor public school in the South Bronx scoring a 700 and a student who scored a 700 that went to an elite private school in Upper Manhattan. He says that the 700 SAT score from the student in the South Bronx means more than the
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ENGL 101-D10 August 7‚ 2013 Actions Christians should take to preserve the Environment Our environment first started when God went to work and put his plan into action. “In the beginning God created the Heavens and Earth.”(Genesis 1) For six days God was at work creating day and night‚ land and water‚ vegetation‚ all living beast of the earth‚ and then “God made mankind in his own image.”(v.27) God made us to care for his masterpiece‚ the environment. The environment
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Independence of external auditor By:- shubham kanchhal Auditor independence refers to the independence of the auditor from parties that may have a financial interest in business being audited. Independence requires integrity and an objective approach for the audit process. This concept requires the auditor to carry his work freely and in an objective manner. The purpose of an audit to enhance the credibility
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Professionalism‚ Ethical Codes and the Internal Auditor: A Moral Argument Mary Ann Reynolds ABSTRACT. This paper examines the case of the internal auditor from a sociological and ethical perspective. Is it appropriate to extend the designation of professional to internal auditors? The discussion includes criteria from the sociology literature on professionalism. Further‚ professional ethical codes are compared. Internal auditors’ code of ethics is found to have a strong moral approach‚ contrasting
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Table of contents 1. Introduction..................................................................................................................2 2. The role of internal and external auditors in corporate governance..............................2 3. Difficulties faced by auditors in contribution to corporate governance……………....4 4. Conclusion…………………………………………………………………………….6 5. References…………………………………………………………………………….7 1. Introduction Corporate governance involves measuring
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A Framework for Auditor Independence The ISB lays a foundation for future guidance. By Susan McGrath‚ Arthur Siegel‚ Thomas W. Dunfee‚ Alan S. Glazer and Henry R. Jaenicke January 2001 EXECUTIVE SUMMARY THE INDEPENDENCE STANDARDS BOARD issued an exposure draft for a conceptual framework for auditor independence containing the concepts and basic principles that will guide the board in its future standard setting. THE NEED FOR A FRAMEWORK AROSE FROM the jumble of confusing independence rules
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