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Auditors Independence
A Study on ACNABIN Chartered Accountants Firm
Auditors Independence
Primary/General Objective: The main objective of the study is to know about the Auditors Independence through a study on ACNABIN-Chartered Accountants Firm.
Auditors Independence
Secondary Objectives To obtain knowledge about the auditors independence risk measured by ACNABIN. To know the factors that impairs auditors independence. To suggest future critical needs for the improvement of the Auditors Independence.
Auditors Independence
An exploratory research.
Auditors Independence
Sampling Technique
Target Population:
articled students, audit managers, managing partners and clients of the firm.
Auditors Independence
Audit
- An independent statements.
examination
of
financial
Auditor
-The purpose of an audit is to enhance the credibility of financial statement by providing written reasonable assurance
Independence
Auditor's Independence
Auditors Independence
Audit
Auditor
-A person who conducts an audit. Also refers a listener , an observer Independence
Auditor's Independence
Auditors Independence
Audit
Independent
Auditor
Independence
Auditor's Independence
Auditors Independence The purpose of an audit is to enhance the credibility of financial statements by providing written reasonable assurance from an independent source that they present a true and fair view in accordance with accounting standard.
Audit
Auditor
Independence
Auditor's Independence
Auditors Independence
Cornerstone of the auditing profession.
Foundation of the publics trust in the accounting profession.
Auditors Independence
Auditors Independence
Auditors Independence
Financial Interests (BSA Para 290.104) financial investments- SEC found that
KPMG violated the auditor independence
Business Relationships
Auditors Independence
Non-audit Services
Bookkeeping Tax Consultancy Internal Audit Service
Auditors Independence
Exceptions
Auditors Independence
Turnover Partition
Audit Services Annual/Statutory/Interim audit 40% Total Turnover through Audit Services 40% Non-Audit Services Accounts preparation (including data processing and book-keeping) Tax Insolvency Financial Advisory Services Management Advisory Services 10% 20% 10% 15% 05% Total Turnover through Non-Audit Services 60% Total 100%
Auditors Independence
Auditors Independence
Test of confirmation from the audit staffs regarding independent relationship status with clients they are auditing
Auditors Independence
Findings
1. 2. 3.
Unhealthy monitoring system of ICAB. Extermination of Peer Assessment/Audit Interested to continue audit relationship year after year.
Auditors Independence
Findings
4. 5. 6.
Unwilling to disclose non-audit fees & services. Extinction of fee-setting regulatory body. Positively, ACNABIN doesnt engage itself in auditing with whom they have financial or business relationship.
Auditors Independence
Service Limitations
Disclosure Rules Fee setting regulatory body
The End