Rocco R. Vanasco, Clifford R. Skousen and L. Roger Santagato
Examines the role of professional associations and governments in developing and promulgating standards to foster auditor independence. Presents a survey of countries which showed…
Abstract
Examines the role of professional associations and governments in developing and promulgating standards to foster auditor independence. Presents a survey of countries which showed that many had taken steps to enhance auditor independence. Governments of several countries had implemented professional audit standards sanctioned by their professional accounting associations dealing with auditor independence. In many countries independent auditors may be censured and even expelled from their respective professional associations for violations of their codes of ethics. The survey also showed that cultural differences limit the effectiveness of international reliance on auditor independence.
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Practising internal and external auditors regularly find that crucial concepts governing how they operate are the twin terms of independence and objectivity. Part of the problem…
Abstract
Practising internal and external auditors regularly find that crucial concepts governing how they operate are the twin terms of independence and objectivity. Part of the problem is that the two terms are often equated. The impact can be conflict with the auditee, misunderstanding with other stakeholders, impairment of efficiency and effectiveness, and role conflict within the internal audit department. The Institute of Internal Auditors is reviewing some of the cherished notions of internal audit in the light of pressures and developments in the business environment. It has already produced a new definition of internal auditing, which, as before, includes the terms independence and objectivity. Consistently, it decided to re‐evaluate these two terms, and established an international research team. This was the briefing submission from the UK, which was highly influential in determining the final product, not yet in the public domain. It considers professional statements and standards, research and developments in both internal and external auditing.