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Audit and Assurance: Assignment

   

Added on  2021-04-16

10 Pages2876 Words92 Views
Running head: AUDIT AND ASSURANCEAudit and AssuranceName of the Student:Name of the University:Author’s Note:

AUDIT AND ASSURANCE1Table of ContentsIntroduction......................................................................................................................................2Role of International Ethics Standard Board for Accountants........................................................2Factors Influencing Objectivity Principle........................................................................................31.Undue Financial Dependence on Client...............................................................................32.Financial interest in Client....................................................................................................43.Family ties or Close Relation between the audit firm and client..........................................54.Non-Audit services to the client...........................................................................................55.External Auditor of the client for many years......................................................................6Conclusion.......................................................................................................................................7Reference.........................................................................................................................................8

AUDIT AND ASSURANCE2IntroductionThe main purpose of this assignment is to analyze the situations given in the assignmentand determine whether they impact the independence and objectivity principle of the auditor(Arens, Elder and Mark 2012). Audit is an independent process whereby the books of accountsare examined in order to establish whether the books of accounts are showing true and fair viewor not. For effectiveness of an audit procedure it is essential that the auditor is independent andfree from the management and also that the auditor is following all the ethical standards whichare required. In the development of ethical standards, the International Ethics Standard Board forAccounts (IESBA) plays a vital role. The role of an auditor is to ensure that the financialstatements represents true and fair value and also conduct the audit following the principles ofobjectivity. As per IESBA, the role of the auditor is to also ensure that the ethical standardsduring the course of an audit. The assignment requires to provide safeguards which can be usedto ensure that the principle of objectivity is not violated. The assignment will also be suggestingmeasures which can improve the situation which can affect the objectivity and independenceprinciple of an auditor.Role of International Ethics Standard Board for AccountantsInternational Ethics Standard Board for Accounts (IESBA) is an international boardwhich is engaged in developing ethical standard which can be of some guidance and help toaccounting professionals. The standards which are developed by IESBA are universallyapplicable. The standards are developed considering the ethical aspect in accountingenvironment for accounting professionals and the standard can apply to all professionals whetherin public services or private or educational sectors (O’Leary and Stewart 2013). The role whichis played by IESBA in the accounting environment are discussed below:1.IESBA develops ethical accounting standard for professionals while taking the inputswhich are collected in public interest and incorporate such data in formulating a standardwhich can be universally applied.2.The board contributes in making the accounting profession strong and also introducessuch standards which inspires professionals to act in an ethical manner with integrity andobjectivity.

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