Auditor Independence

This topic has 4 replies, 2 voices, and was last updated 10 years ago by hmulla11.

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March 14, 2016 at 3:06 pm #306349
hmulla11
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Hi,

My question is why is the external auditors independence so important?
March 14, 2016 at 7:10 pm #306404
Ken Garrett
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So that they can maintain their integrity and objectivity.

If they are not independent their opinions will be influenced by factors such as self interest and friendship. Trust then diminishes and why pay high fees for an opinion you do not trust?
March 15, 2016 at 4:12 pm #306502
hmulla11
Member
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Thanks ken

Reagrding auditor independence would the relevant isa be ISA 200 and if so, how would this explain the importance of auditor independence?
March 15, 2016 at 6:24 pm #306518
Ken Garrett
Keymaster
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See IESBA Code of Ethics for Professional Accountants S280.2.

You can Google for the Code of Ethics

or try this link:

https://www.ifac.org/ethics/iesba-code
March 22, 2016 at 4:01 pm #307817
hmulla11
Member
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Cheers Ken another question,

When evaluating IFAC’s code of ethics what can be said about its advantages and disadvantages?
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