2-45 (Audit Committees and Auditor Independence‚ LO 4‚ 5‚ 6) The audit committee is required to evaluate the independence of both the internal and external audit functions. Required a. What factors would you suggest an audit committee look at in evaluating the external auditor’s independence? b. How can the audit committee influence the independence of the internal audit function? c. The audit committee must pre-approve all nonaudit services pro- vided by the external auditor. Assume the
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1 Chapter 7: Audit Evidence I. Definition: Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one
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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 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 essential feature of an audit is its independence
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The Demand for Audit and Other Assurance Services O ssu a S s Chapter 1 ©2012 Prentice Hall Business Publishing‚ Auditing 14/e‚ Arens/Elder/Beasley Arens/Elder/Beasley 1-1 SarbanesSarbanes-Oxley Act Enron WorldCom The Act established the Public Company Accounting Oversight Board. It also requires auditors to report on the effectiveness of internal control over financial reporting. ©2012 Prentice Hall Business Publishing‚ Auditing 14/e‚ Arens/Elder/Beasley Arens/Elder/Beasley 1-2
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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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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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.......................................................................... 5 Methods ............................................................................................................................................ 10 St. Patrick’s RC Primary School ..................................................................................................... 10 Genetics lesson plan: Charles Darwin and Evolution .................................................................... 13 Questionnaires
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End of year exam in Geography Key words Deforestation Is the felling and clearance of forest land. The process of cutting down a large number of trees in a forest and not replacing them Ecosystem Is a community of plants and animals which interacts with each other and their non-living environment. Sustainable development Understanding how to meet the needs of the present without compromising the needs of the future generations by not harming the environment. Longshore drift Is a process of transportation
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In the article "What Obama Hopes To Accomplish Before Leaving The White House" The Onion uses accomplishments and fails from President Barack Obama’s two terms as president and puts a lighthearted spin on them using horatian satire. In this piece Barack Obama is putting together a frivolous to-do checklist to complete before he leaves office. The article takes many accomplishments of Barack Obama during his presidency and uses it in a humorous context. This draws on the audience’s pathos and
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