WORKING PAPER Auditor Independence: An Examination Independence Risk Factors and Mitigating Factors on Auditor Judgment Barbara M. Vinciguerra Penn State Great Valley School of Graduate Professional Studies Auditor Independence: An Examination Independence Risk Factors and Mitigating Factors on Auditor Judgment Abstract Professional standards require auditors to be independent in the performance of attestation services. Critics of the accounting profession have expressed
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Introduction The importance off skepticism in performing audits has been recognized from the time the very first auditing standard was implemented (Fullerton and Durtschi‚ 2012). The recent financial crises and audit failures have caused the profession to reassess and emphasise the importance of skepticism during an audit engagement‚ ensuring that auditors increase their level of skepticism (Fullerton and Durtschi‚ 2012). Auditors are now asked to expand their skeptical perspective to the level
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Role played by professional auditors in Uganda Auditing is the independent examination of financial statements and the underlying books of account so as to form an opinion on whether they are prepared in all material aspects in accordance with the financial reporting framework. Such reporting framework includes International Accounting Standards (IAS)‚ the Companies Act Cap 110 (for Uganda) and any other relevant legislation. This is however carried out by a person termed as auditor. Internal Audit
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SEC Concerned with Changes in the Public Accounting Profession The SEC and the former Chairman Arthur Levitt Jr. were extremely concerned that the public accounting firms were violating the auditors independence rules addressed through the Securities Exchange Acts. Auditing firms now had dual citizenship in public companies: (1) they issued opinions on audited financial statements and (2) they participated in various consulting engagements for those same companies. Levitt ’s solution was to split
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Does shareholders ratification of auditor selection enhance auditor independence? Sear Amiri 894560 Accounting Supervisor : S.N.M. Van den Bogaerde -2012- Abstract: The U.S. Department of the Treasury ’s Advisory Committee on the Auditing Profession (ACAP) recommends that all public companies must have an annual shareholders ratification of external auditor selection. An important aim of their recommendation was to enhance auditor independence. However the ACAP did not provide
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The Institute of Chartered Accountants in Australia Addressing Unit 3BACF Accounting & Finance The role and function of external auditors charteredaccountants.com.au The Institute of Chartered Accountants in Australia Government and the community The role and influence of governments and other bodies The role and function of external auditors Financial statements are used for a variety of purposes and decisions. For example‚ financial statements are used by owners to evaluate management’s
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SKEPTICISM The theory that certain knowledge is impossible. the doctrine that true knowledge or knowledge in a particular area is uncertain Doubt or disbelief of religious tenets. The doctrine that absolute knowledge is impossible‚ either in a particular domain or in general. A methodology based on an assumption of doubt with the aim of acquiring approximate or relative certainty. doubt or unbelief with regard to a religion‚ especially Christianity. Skepticism: from the Greek word (skepsis)
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Auditor Independence and Non-Audit Services: A Literature Review Vivien Beattie University of Stirling and Stella Fearnley University of Portsmouth TABLE OF CONTENTS Page List of tables and list of figures About the authors v vi List of abbreviations vii Executive summary ix Part 1 Auditor independence 1 Introduction 2 1 1.1 The role of audit in regulating capital markets 1 1.2 The ‘problem’ of non-audit services (NAS) 1 1.3 The current UK regulatory and professional environment
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Integrity According to The Institute of Internal Auditors (IIA)‚ "The integrity of internal auditors established trust and thus provides the basis for reliance on their judgement". IIA further added that to be integrity‚ internal auditors: * Shall perform their work with honestly‚ diligence‚ and responsibility. * Shall observe the law and make disclosures expected by the law and the profession. * Shall not knowingly be a party to any illegal activity‚ or engage in acts that are discreditable
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Skepticism as Part of Life Our daily lives we encounter situations and moments in which we are skeptical without being aware of it‚ at times we use skepticism relentlessly without stopping to think of theories‚ methods or ways of behaving. As we see it very clearly in Outline of Pirrionism; Sextus Empiricus‚ Sextus defined and shared with us about the shape or position that takes a skeptical person‚ “skepticism is an ability or metal attitude which opposes appearances to judgments in
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