ipl-logo

Auditor Independence: Case Study

843 Words4 Pages

Auditor Independence Auditors provide independent third-party opinion on the financial statements of a company. The independence of these auditors must be safeguarded during each engagement. The reliability and validity of an opinion rely on the independence of the auditor. There are times when the independence of the auditor is interfered with by malicious parties to safeguard with their own interests. Auditor independence can be referred to as the lack of hidden agendas and personal interests among parties that may affect the auditor’s objectivity (Thibodeau, Ramsay, Louwers, Sinason & Strawser, 2015). Christians have always wondered whether God is interested in the world of work, whether whatever people do for their professions matter to …show more content…

When this arises, there are specific guidelines provided by the respective bodies and authorities for handling misunderstanding between the auditor and the client. Conflict situations tend to differ from one situation to another some of which might be caused by external influences making it difficult to negotiate between the involved parties. Amidst these conflicts, it is advised that the auditor terminates the contract of engagement entered with the client stating that the nature of their relationship is making it difficult for the auditor to provide a true and fair view of the financial statements (Emby & Davidson, 1998). Besides conflict, other threats to independence are self-interest threat, self-review threat, advocacy threat, familiarity or trust threat and intimidation threat. Self-interest threats are mostly of financial nature where the auditor has a financial interest in the company that they are auditing and fear that providing bad opinion on the statements might hinder them from attaining this interest. Among the safeguards to these threats are; professional requirements, the legislation, and regulatory bodies and other third parties (Fearnley, Beattie & Brandt, …show more content…

(1998). The effects of engagement factors on auditor independence: Canadian evidence. Journal Of International Accounting, Auditing And Taxation, 7(2), 163-179. http://dx.doi.org/10.1016/s1061-9518(98)90012-x Fearnley, S., Beattie, V., & Brandt, R. (2005). Auditor Independence and Audit Risk: A Reconceptualization. Journal Of International Accounting Research, 4(1), 39-71. http://dx.doi.org/10.2308/jiar.2005.4.1.39 IESBA. (2006). Code of Ethics for Professional Accountants December 2006 – London, UK. Jones, A. (2002). A comprehensive audit case. Okemos, MI: Armond Dalton Publishers. Thibodeau, J., Ramsay, R., Louwers, T., Sinason, D., & Strawser, J. (2015). Auditing & assurance services (6th ed.). New York, NY: McGraw-Hill. Wright, C. (2010). Saints in the Marketplace: A Biblical Perspective on the World of Work - The Other Journal. The Other Journal. Retrieved 30 January 2018, from

Show More
Related

Mgt Section 391 Week 1 Paper

802 Words | 4 Pages

1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties. According to ET Section 391.004, an auditor would be violating Rule 301.01 if the information is considered to be confidential client information, unless the auditor has the clients' specific consent, preferably in writing, for the disclosure or use of such information. “A member in public practice shall not disclose any confidential client information without the specific consent of the client” (AICPA § 301.01).

Read More

Acc 201 Final Project Part 1 Accounting Cycle

1187 Words | 5 Pages

ACC 201 Final Project Part I Accounting Cycle Report Vanessa Ann Williams Southern New Hampshire University The accountant cycle has really impacted me to gain insight on the financial side of Peyton Company. In the accountant cycle, there are many particular directions involve determining the growth of the company such as steps, role, omission and financial statements. It’s important to apply every step from the accountant cycle to make a financial critical decision in the long run. This report will have a breakdown of how to apply the accountant cycle for Peyton Company to be aware of future financial decisions to keep the company holding strong.

Read More

Summary Of William T Cavanaugh's Being Consumed

1404 Words | 6 Pages

William T Cavanaugh (2008), wrote Being Consumed: Economics and Christian Desire which is a philosophical book, which focus on four (4) economic life matters that addresses the consumer culture within society. These four economic life matters are free market, consumerism, globalization and economic scarcity. In order for this topic to be discussed on a theological point of view, the author draws the reader’s attention to human life, the ends of life in God. The key question in every process is whether or not the transaction contributes to the flourishing of each person involved. In order to address these questions the author points to concrete examples of alternative economic practices in which Christians participate-: business, co-operatives, credit union, practices of consumption which marks the vision for Christian economic life.

Read More

Home Depot Financial Analysis

365 Words | 2 Pages

Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill

Read More

AICPA Legacy Scholarship Essay

839 Words | 4 Pages

I can simply answer because I want to be a hero. In my opinion, an auditor is a dark knight that saves the world secretly and silently. An auditor has to commit to do his job professionally as well as ethically. As a matter of fact, there have been many corporate and accounting frauds, such as the WorldCom scandal in 2002 and the Madoff Ponzi scheme in 2008,

Read More

The Protestant Work Ethic: Just Another Urban Legend Summary

1361 Words | 6 Pages

In “The Protestant Work Ethic: Just Another ‘Urban Legend?’” Jonathan Klemens states what the work ethic is and how it applies in American society. Klemens explains that the work ethic has helped the nation as a whole. Klemens explains that people work hard to achieve “the company or organization’s missions” (122). Not only that, Klemens also explains that people would work hard to gain the particular professions they desire instead of just working with no goals.

Read More

Jefferson Tant Beliefs

957 Words | 4 Pages

Ministering to the church of God requires two traits: sacrifice and commitment. Few men possess either of these things, and even fewer are willing to work toward them. Yet, there is a rare breed of individuals who innately have these traits. One such individual went by the name of J.D. Tant. Throughout his entire life, Tant happily committed himself to the Lord and sacrificed earth’s treasures to labor on His behalf.

Read More

Bart Ehrman The New Testament Summary

1513 Words | 7 Pages

Bart D. Ehrman. The New Testament: A Historical Introduction to the Early Christian Writings. New York: Oxford University Press, Fifth edition, 2012 SUMMARY The New Testament: A Historical Introduction to the Early Christian Writings is an 536 page, illustrated, historical guide to early Christianity and many of the early writings of the time—not just those of the New Testament Canon. As the title boasts it is used as an introduction textbook for scholars studying the New Testament.

Read More

The Populist Party In The 1890's

1450 Words | 6 Pages

He affirms that the real hard-working Christians are being taken advantage of by the idle capitalists who do not work and just move the money around. These idle capitalists go against his theory of labour and economics where labour produces wealth. Bryan worries that if this trend continues American jobs will eventually be taken by the “yellows” and the “ scheming Jews”. Bryans uses Christian terms to dramatise the businessmen as villains who are pressing down the “brow of labour” a “crown of thorns” similar to how men had crucified Jesus Christ. He highlights that

Read More

Comparison Of Puritans And Deism

1334 Words | 6 Pages

They must work their whole lives to show the Lord they are worthy of salvation. They must follow the divine law down to every syllable. This path was their key to

Read More

Hinduism And Confucianism Analysis

1451 Words | 6 Pages

In his most famous publication, Weber studies the relationship between the ethics of ascetic Protestantism and the emergence of contemporary capitalism. He accounts bureaucracy as a key feature in modern society. This is in no way a detailed account of Protestantism itself but instead an introduction to his later studies such as “The Religion of China: Confucianism and Taoism” or “The Religion of India: The Sociology of Hinduism and Buddhism”. Weber argues that the “spirit” that defines capitalist ideas originates in the Protestant Reformation.

Read More

Freedom And Unfreedom Summary

1247 Words | 5 Pages

Cavanaugh discusses how God, in the Eucharist, forms us to consume and be consumed rightly. Looking at desire in contemporary "free market" economies, Being Consumed holds a positive and inspiring vision of how we as Christian who are the body of Christ can engage in economic alternatives. At every instance, the author illustrates

Read More

IT Infrastructure Audit Case Study

2512 Words | 11 Pages

5 Businesses or organizations throughout the world exhibit their own audit controls as well as observe specific procedures. When addressing IT audit issues, a business such as Asplundh Tree Expert, Inc. are known for their efficient audit procedures and internal practices. IT audit process effectiveness happens when an organization or business is adhereing or responding to set procedures. An organization may conduct several diverse audits, but consequently regardless of the audit type used, an audit is done to ensure a business or organization are using all resources available to them and for their benefit. Diverse IT audit selection ensures that the company set and meet goals and objectives that have been laid down by the international standards

Read More

Reflection Of Paul's Pneumatology

1434 Words | 6 Pages

Charism plays an important role in both the communal and individual life of a believer. Here Menzies is in agreement that “the rich variety of gifts granted to every believer for the common good appear to be a natural extension of Paul’s larger pnuematological perspective”(Fee, 192). The significant thing to note though is that for Paul the Holy Spirit’s work in our lives is connected to our participation in the body of Christ. As we walk in the Spirit, He produces fruit in our lives. The fruit of the Spirit in our lives is not just individualistic and for personal benefit but for corporate benefit of the body of

Read More

Essay: Why I Chose To Study Accounting

894 Words | 4 Pages

My interest in Accounting stemmed from my optimistic expectation about career development in this field. Accounting is so important in the business world that only on the basis of accounting information, management is able to make investment decisions, and optimize internal operation. Thus, it is widely applied to every business sector. However, due to a strange combination of circumstances, I was matriculated by Biology and Medical Engineering College, instead of the Economic and Management College, in which I could accumulate the knowledge that would allow me to realize my career ambition. Changing major was not easy to operate in our university.

Read More

More about Auditor Independence: Case Study

Open Document