Question

Please discuss and provide support on the potential ethical dilemma of audit independence as it pertains to having shares in a company. Information should include the following:

·         The key governing bodies charged with the creation and oversight of the selected topic.

·         The authoritative literature (i.e. SASs) related to the topic.

·         An analysis of key ethical considerations related to the topic (including theoretical

Answer 1

• Positives Independence Day Chotu independence of a internal auditor or to the external auditor from parties that may have financial interest in the business being audited Independence requires integrity and an objective approach to the audit process the concept requires the auditor to carry out his or her work freely in an objective manner the purpose of an audit is to enhance the credibility of financial statement by providing written reasonable Assurance from and independent sources that they present the true and fair view in accordance with the accounting standard. In the future issues regarding conflicts of interest may be tackled through legislation which dance audit firms holding shares in client companies some financial commentators believe that it is the subjective nature of modern day accounting which is the main contributor to the ambiguity of auditor Independence and suggest this could be clarified through the introduction of conceptual Framework rather than legislation deficit of agreed definitions on matter which may not be income past 5 formal standard would benefit the auditor and ultimately remove any doubts over real and Apparent imbalances. Within the United Kingdom there are various regulations in post regarding auditor Independence the main enforcement of audit is the Companies Act 1985 it is also note that regulations relating to preparation of financial statements are also relevant the Companies Act 1985 dictates that it is the responsibility of shareholders to appoint the auditor of the Annual General Meeting section 384 of the cat refers the theory behind that is directives cannot intermediate auditors with 323 placement or bribe them by offering reappointment in practice the existing orators of exceptional circumstances.
• statements of auditing standards audit sampling is an application of audit procedures to less than 100% of items within an account balance or class of transactions for the purpose of evaluating some characteristics of the balance or class this section provides guidance for planning performing and evaluating or samples transaction. The auditor of an is aware of account balances and transactions that may be more likely to continue statements he considered this knowledge in planning his procedures including audit sampling the auditor usually will have no special knowledge about other account balances and transactions that in his judgement will need to be tested to fulfill his audit objectives audit sampling especially useful in these cases there are two general approaches in audit sampling
• Teacher regulator School unsuspecting self-managed super fund auditors up for the failing to meet this requirement ki despite the fact they declare their Independence when they signed off on the report the second most common issue in the term of accounting standard bridges that we identify our quality report program in it and Independence reaches the penalties for Breaking the independent floors can be potentially quite certificate focus areas for regulators. The distinguishing mark of the accounting profession is its acceptance of the responsibility to act in the public interest professional Accountants and their members bodies have always recognise that the privilege of being a member of professional brings with its ethical responsibilities at the core of our ethical responsibility is the absolute need to at all times with integrity everyone has their own understanding of work ethics means and what therefore constitutes ethical behaviour ethics is concerned with how an attitude action a decision is determined as right or wrong or Good Earth ethical behaviour could therefore be seen as doing the right thing this is of course too simplistic ethical decision making professional Accountants subconsciously make ethical decisions in every aspect of daily performance of their professional role in the most instances the thought process and the decision made is instinctive which ensures the professional accountant has clear understanding whether an activity is wrong or right in some instances this is obvious for example money laundering the court establishes the fundamental principles and provide a Framework into which warrant holders can fit many ethical dilemmas the Framework provides a conceptual approach to resolving ethical dilemmas the cold makes it clear that warrant holders should be guided not merrily by the terms but by the spirit of Guide hence the fact that particular conduct does not appear among the list of examples and prohibition Store is not necessarily mean that no ethical complete exist.