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auditor independence, compliance with Sarbanes-Oxley

Case 47:

You are a recent graduate with a degree in accounting .Your employer is unfamiliar with the concept of auditor independence. Explain to your new boss why auditor independence is important and identified specific steps that must be taken to ensure compliance with independence requirement of Sarbanes-Oxley.

Provide at least 2 references.

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Case 47:

You are a recent graduate with a degree in accounting .Your employer is unfamiliar with the concept of auditor independence. Explain to your new boss why auditor independence is important and identified specific steps that must be taken to ensure compliance with independence requirement of Sarbanes-Oxley.

Auditor independence is important in auditing because it ensures that the auditor has integrity and an objective approach to the auditing process. The auditor independence also means independence of the auditor from persons or entities whose interests may not align with risk management, a strong internal control, and good corporate governance. The objective of carrying out an audit is to improve the credibility of financial statements with a written opinion from an outside (independent) source. This objective will be violated if the users of the audit report believe that the auditor is influenced by the company itself.

Going into some detail, the auditor needs independence in selecting the ...

Solution Summary

This explanation provides you a comprehensive argument relating to auditor independence, compliance with Sarbanes-Oxley

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