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What are the Threats to Auditors independence?
Some threats to an auditors independence are as followed:Self-interest threat - when the auditor on the engagement team could benefit in some way or form (financially for example) with the clientFamiliarity threat - when the auditor has some form of a close relationship with the client (be it the top management or employees, or the firm) which may cause them to be generous and sympathetic when assessing the clientIntimidation threat - when the auditor is deterred from acting in an objective, professional manner as a result of threats (real or not) from the clientSelf-review threat- when the auditor is hired to review/evaluate any product or judgment that they themselves were responsible for preparing (from a previous engagement) in order to reach a conclusionAdvocacy threat - when the auditor promotes the client (their business, the client themselves, etc) to the point that objectivity may be (perceived) to be impaired
What factors in the auditor and client relationship create a power imbalance in favor of the client?
What factors in the auditor and client relationship create a power imbalance in favor of the client? In:http://wiki.answers.com/Q/FAQ/3335-35 [Edit categories]
When should an audit engagement letter be issued to an audit client?
It should be issued during the planning stages of the audit
How do i construct a letter to terminate an external auditor's appointment?
The writing of a letter to terminate an external auditor's appointment should start with your authority to do so if it is not clear who you are to the auditor. The letter should thank the person for their service. Finally, the letter should end with the expected end date.
What is the auditors appointment letter?
The auditors appointment letter is the official letter that confirms the appointment a given auditor to a given institution.
What are the Threats to Auditors independence?
Some threats to an auditors independence are as followed:Self-interest threat - when the auditor on the engagement team could benefit in some way or form (financially for example) with the clientFamiliarity threat - when the auditor has some form of a close relationship with the client (be it the top management or employees, or the firm) which may cause them to be generous and sympathetic when assessing the clientIntimidation threat - when the auditor is deterred from acting in an objective, professional manner as a result of threats (real or not) from the clientSelf-review threat- when the auditor is hired to review/evaluate any product or judgment that they themselves were responsible for preparing (from a previous engagement) in order to reach a conclusionAdvocacy threat - when the auditor promotes the client (their business, the client themselves, etc) to the point that objectivity may be (perceived) to be impaired
What factors in the auditor and client relationship create a power imbalance in favor of the client?
What factors in the auditor and client relationship create a power imbalance in favor of the client? In:http://wiki.answers.com/Q/FAQ/3335-35 [Edit categories]
Attorney Engagement Letter?
Get StartedThe Attorney Engagement Letter documents the terms of the sale of services by a legal provider (the "Law firm") to another company or an individual (the "Client").The basic elements of the Attorney Engagement Letter are:Identification of the parties.A description of the services to be performed.Payment terms."
What is remunerated?
The audit fee payed by client to the auditor.
What is auditors remuneration?
The audit fee payed by client to the auditor.
What is the auditor's responsibility for finding error and fraud?
identified by the client
When should an audit engagement letter be issued to an audit client?
It should be issued during the planning stages of the audit
What various defenses may auditor use in defending against a suit brought by a client?
An auditor may defend against a suit brought by a client by showing that they conducted the audit in accordance with professional standards, that the client's losses were not caused by the auditor's actions, or that the client failed to provide accurate information. Additionally, the auditor may argue that the client's claims are time-barred or that the damages claimed are unreasonable.
What is audit engagement?
An audit engagement is when an auditor is performing an audit on a business. They are looking at all their books to make sure the business is recording their finances correctly.
How do i construct a letter to terminate an external auditor's appointment?
The writing of a letter to terminate an external auditor's appointment should start with your authority to do so if it is not clear who you are to the auditor. The letter should thank the person for their service. Finally, the letter should end with the expected end date.
When is a client entitled to a refund?
READ THE AGREEMENT that established the client relationship, and has the terms of the engagement including fee's. That is what YOU agreed to. That's all there is to it...
What is Qualified and unqualified auditor report?
At the end of audit engagement, an auditor can give hisÊopinion Êin the auditor's report as either qualified or unqualified. Unqualified report is one that the auditor is satisfied that the business Êor an organisationÊhas present fairly its affair in all material aspect. WhileÊa qualified Êreport oneÊwhich theÊauditor concludes Êthat most matter have been dealt with but not sufficiently.
