Is it possible for an auditor to follow all the rules of independence in accordance with...

Is it possible for an auditor to follow all the rules of independence in accordance with the Code of Professional Conduct and still not be independent according to Generally Accepted Auditing Standards? give detailed and provide examples

Expert Solution

Yes, it is possible for an auditor to follow the independence rules in accordance with the code of conduct and still not be independent according to GAAS. The code of professional conduct provides high level independence rules to follow and is less strict than the requirements within the GAAS. The GAAS provides a number of specific rules tailored specifically to auditors. As a result, it is possible for an auditor to not be independent per the GAAS, but be independent as per the code of conduct.

Examples

As per professional conduct a member in public practice who provides auditing and other attestation services should be independent in fact and appearance. In providing all other services, a member should maintain objectivity and avoid conflicts of interest. Although members not in public practice cannot maintain the appearance of independence, they nevertheless have the responsibility to maintain objectivity in rendering professional services.whereas GAAS provides many rules of independence which is not required as code of conduct.

ekkarill92 answered 1 year ago

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