Develop arguments for why auditors should be allowed to perform these services for the same client. Develop separate arguments for why auditors should not be allowed to perform non-audit services for their audit clients.© BrainMass Inc. brainmass.com October 25, 2018, 3:03 am ad1c9bdddf
What are the auditor independence issues surrounding the provision of external auditing services, internal auditing services, and management consulting services for the same client? Develop arguments for why auditors should be allowed to perform these services for the same client. Develop separate arguments for why auditors should not be allowed to perform non-audit services for their audit clients.
The auditor independence is likely to be compromised if the same auditor provides external auditing services, internal auditing services and management consulting service for the same client. When a firm performs internal auditing work for the same firm for which it does external auditing work, there is a tendency to use the information collected during the internal auditing work during the external audit work. This leads to a compromise in the objectiveness of the audit ...
Auditor independence is discussed in great detail in this solution.
Forensic Accounting Case 47: auditor independence, compliance with Sarbanes-Oxley
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.
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