Auditor Independence. Group Member: Lim Tien Ming109738 Lim Yin Chern 109744 Khoh Saw Yoong109812 Liew Wen Ying109820. CONTENT. INTRODUCTION ISSUES CONCLUSION. Introduction.
Lim Tien Ming109738
Lim Yin Chern 109744
Khoh Saw Yoong109812
Liew Wen Ying109820
Know how and why undue management influence, “guanxi” and how provision of non audit service to audit client will undermine auditor independence
ISSUE 1 :
Undue Management Influence On Auditors’ Independence
“Although external auditors' independence is protected to some degree, they still face many of the same issues as internal auditors when it comes to undue management influence.”(Frederick Gallegos, 2004)
2. SCOPE OF WORK
Management can influence the scope of work of both internal and external auditors.
3. CHANGING PRIORITIES
When I say ‘guanxi’What is the first things that comes to your mind?
Do you think accounting firms should be banned from providing non-audit services to their clients?
-more understand the operations of the company
- “knowledge spillover”
- means that knowledge gained in the audit engagement , can be undertaken quickly and efficiently.
The joint provision of audit and NAS cause the threat to independence is potentially considerable!
NAS provision> Audit