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An auditor is required to be independent from the entity it audits. The independence requirements applying to auditors are legally enforceable and are located within the following legislation and standards:
Maintaining independence has a number of aspects that the auditor must be mindful of throughout the client/auditor relationship. A brief overview of the areas an auditor must be aware of and implement appropriate responses to include:
When conducting an audit or review of a financial report, the auditor must provide a written declaration confirming that there have been no contraventions of the auditor independence requirements or applicable code of professional conduct. Audit qualityIn accordance with section 307 of the Corporations Act, it is the auditor's responsibility to form an opinion about whether:
In conducting an audit or review of a financial report, section 307A of the Corporations Act requires an auditor to follow the auditing standards issued by the Auditing and Assurance Standards Board. The audit inspection program aims to raise the standard of audit quality and auditor independence in the profession. See also Audit transparency reports.
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Generally Accepted Auditing Standards: Definition, GAAS vs. GAAPAlicia Tuovila Full Bio Updated November 11, 2020 Khadija Khartit Full Bio Hans Daniel Jasperson Full Bio
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