SEC & PCAOB Independence rules require that an auditor be independent in "fact" and independent in...
SEC & PCAOB Independence rules require that an auditor be independent in "fact" and independent in "appearance".
- What does it mean to be independent in "fact" and "appearance" - are they the same thing?
- If they are different, why do you think an auditor must adhere to both requirements?
- What might happen if an auditor only adheres to one (fact or appearance)?
Homework Answers
Please give positive rating your feedback is valuable to me.
In case , any problem please leave a comment.
Add Answer to:
SEC & PCAOB Independence rules require that an auditor be
independent in "fact" and independent in...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the concepts of independence in fact and independence in appearance. a. Define independence in fact and independence in appearance. b. What two general types of relationships would normally compromise auditors' independence? c. For each of the following separate situations, discuss whether you believe the auditors' independence has been compromised. 1. The auditors' firm provides extensive consulting services to the client; these services provide revenues to...
What is the meaning of independence from the perspective of the government auditor and why is...
What is the meaning of independence from the perspective of the
government auditor and why is independence so important? See the
article below to answer the question.
Independence The standard of independence covers both independence of mind and independence in appearance. Independence of mind concerns the state of mind that permits the auditor to audit without being affected by influences that may compromise professional judgment, thereby allowing the auditor to act with integrity, objectivity and professional skepticism. Independence in appearance...
Chapter Discussion Question Erica Gray, CPA, is a sole practitioner. She has auditor for 10 years...
can any one help me with this
Chapter Discussion Question Erica Gray, CPA, is a sole practitioner. She has auditor for 10 years. Recently a long-standing audit client asked design and implement an integrated computer-based accountin information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wo she can remain objective on subsequent audits in her evaluation client's accounting system and its records if she was responsibl design and implementation. Gray knows that...
In 2005, Jill Smith was an audit senior working for a public accounting firm on the...
In 2005, Jill Smith was an audit senior working for a public accounting firm on the audit engagement of the ABC company. One of Jill’s friends asked her whether she thought that ABC stock was a good investment. She said yes. Her friend offered to purchase ABC stock on her behalf. Jill provided $5000 for the purchase placed under her friend’s name. She didn’t want her name associated with it because of independence concerns; an auditor is not allowed to...
Chapter 7 Accounting Information Systems ETH CH BTN 7-3 Erica Gray, CPA, is a sole practitioner....
Chapter 7 Accounting Information Systems ETH CH BTN 7-3 Erica Gray, CPA, is a sole practitioner. She has been practicing as an auditor for 10 years. Recently a long-standing audit client asked Gray to design and implement an integrated computer-based accounting information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wonders if she can remain objective on subsequent audits in her evaluation of the client's accounting system and its records if she...
please answer all asap! "Independent in fact" is best defined as acting with integrity and objectivity...
please
answer all
asap!
"Independent in fact" is best defined as acting with integrity and objectivity addressing potential conflicts of interest that can be observed or factually determined by others acting with independence and integrity acting in a way that is observable under the Rules of Conduct Which of the following is/are the primary means of communication for gathering information while assessing management integrity? Communication with client personnel and with the client's industry peers, only Communication with the client's industry...
1. There are reasons why accountants, according to the Code of Conduct, must be both independent...
1. There are reasons why accountants, according to the Code of Conduct, must be both independent in fact and appearance. Why do you think this is? 2. Assume you had some excess funds sitting at home. You were thinking of investing in a company. What factors would you consider in order to make an informed decision about whether to invest or not in this company? 3. What if the auditors who audited a major corporation concluded that their financial statements...
On August 15, 2017, the SEC completed an Administrative Hearing process Initiated by a PCAOB Investigation of KPMG...
On August 15, 2017, the SEC completed an Administrative Hearing process Initiated by a PCAOB Investigation of KPMG, LLP and one of their audit partners John Riordan, CPA for conducting a materially deficient audit of Miller Energy Resources Inc. KPMG became the successor auditor of Miller for fiscal 2011. Miller was charged with accounting fraud in 2015. Among other things, the SEC found that KPMG and Riordan: • falled to properly assess the risks associated with accepting Miller Energy as...
asap only answers 5. In which of the following instances would independence be considered to be...
asap only answers
5. In which of the following instances would independence be considered to be impaired? The CPA has been retained as the auditor of a company a. and the CPA lives in the same town as the controller. b. in which the CPA's brother is the controller. c. which owes the CPA audit fees for current year services. The company being audited has just filed a petition for bankruptcy. d. All of the above. 6. The partner of...
Which of the following would not require a departure from an unqualified opinion? Question 1 Which...
Which of the following would not require a departure from an
unqualified opinion?
Question 1 Which of the following would not require a departure from an unqualified opinion? Selected Answer: Statement of cash flows not included Answers: Statements are not in conformity with GAAP. Scope limitation. Statement of cash flows not included Related party transactions. Question 2 Which of the following is false regarding materiality and the audit opinion? Selected Answer: The level of materiality is mathematically calculated and therefore...
Independence. Generally accepted auditing standards require auditors to be independent. Included within this standard are the concepts of independence in fact and independence in appearance. a. Define independence in fact and independence in appearance. b. What two general types of relationships would normally compromise auditors' independence? c. For each of the following separate situations, discuss whether you believe the auditors' independence has been compromised. 1. The auditors' firm provides extensive consulting services to the client; these services provide revenues to...
What is the meaning of independence from the perspective of the
government auditor and why is independence so important? See the
article below to answer the question.
Independence The standard of independence covers both independence of mind and independence in appearance. Independence of mind concerns the state of mind that permits the auditor to audit without being affected by influences that may compromise professional judgment, thereby allowing the auditor to act with integrity, objectivity and professional skepticism. Independence in appearance...
can any one help me with this
Chapter Discussion Question Erica Gray, CPA, is a sole practitioner. She has auditor for 10 years. Recently a long-standing audit client asked design and implement an integrated computer-based accountin information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wo she can remain objective on subsequent audits in her evaluation client's accounting system and its records if she was responsibl design and implementation. Gray knows that...
Chapter 7 Accounting Information Systems ETH CH BTN 7-3 Erica Gray, CPA, is a sole practitioner. She has been practicing as an auditor for 10 years. Recently a long-standing audit client asked Gray to design and implement an integrated computer-based accounting information system. The fees associated with this additional engagement with the client are very attractive. However, Gray wonders if she can remain objective on subsequent audits in her evaluation of the client's accounting system and its records if she...
please
answer all
asap!
"Independent in fact" is best defined as acting with integrity and objectivity addressing potential conflicts of interest that can be observed or factually determined by others acting with independence and integrity acting in a way that is observable under the Rules of Conduct Which of the following is/are the primary means of communication for gathering information while assessing management integrity? Communication with client personnel and with the client's industry peers, only Communication with the client's industry...
On August 15, 2017, the SEC completed an Administrative Hearing process Initiated by a PCAOB Investigation of KPMG, LLP and one of their audit partners John Riordan, CPA for conducting a materially deficient audit of Miller Energy Resources Inc. KPMG became the successor auditor of Miller for fiscal 2011. Miller was charged with accounting fraud in 2015. Among other things, the SEC found that KPMG and Riordan: • falled to properly assess the risks associated with accepting Miller Energy as...
asap only answers
5. In which of the following instances would independence be considered to be impaired? The CPA has been retained as the auditor of a company a. and the CPA lives in the same town as the controller. b. in which the CPA's brother is the controller. c. which owes the CPA audit fees for current year services. The company being audited has just filed a petition for bankruptcy. d. All of the above. 6. The partner of...
Which of the following would not require a departure from an
unqualified opinion?
Question 1 Which of the following would not require a departure from an unqualified opinion? Selected Answer: Statement of cash flows not included Answers: Statements are not in conformity with GAAP. Scope limitation. Statement of cash flows not included Related party transactions. Question 2 Which of the following is false regarding materiality and the audit opinion? Selected Answer: The level of materiality is mathematically calculated and therefore...
Most questions answered within 3 hours.
-
Batteries play an important role in our everyday lives. From
making many devices mobile, to allowing...
asked 4 minutes ago -
It is possible to iterate through an array quickly and easily
using a loop?
asked 12 minutes ago -
Determine the pHpH of an HFHF solution of each of the following
concentrations. The KAKA value...
asked 8 minutes ago -
Two point charges of 7.0mL are initially 11.5m apart. What is
the change in potential energy...
asked 9 minutes ago -
Please write as a short answer
You have heartburn and a two hour working session on...
asked 13 minutes ago -
Please solve with excel and mention the excel function.
Thanks
Kevin deposits $10,000 in a savings...
asked 15 minutes ago -
Which Special Journal would the following transaction be
journalized in?
Sold merchandise on account to Customer...
asked 27 minutes ago -
Assuming 100% dissociation, calculate the freezing point (?fTf)
and boiling point (?bTb) of 1.45 ? K3PO4(aq)1.45...
asked 29 minutes ago -
An inflated helium balloon with a volume of 0.35L at
sea level (1.0 atm) was allowed...
asked 31 minutes ago -
Python 3.0 Please
Write a function that takes, as arguments, a binary string, a
list of...
asked 59 minutes ago -
(a) Calculate the momentum of a 2150 kg elephant charging a
hunter at a speed of...
asked 47 minutes ago -
all the following is an example of a fixed cost except: any cost
that changes in...
asked 49 minutes ago