Audit & Assurance Assignment1 - 06043682 Audit And...

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06043682 Audit And Assurance Year 3 INDEPENDENCE AND THE PROVISION OF OTHER NON-ASSURANCE SERVICES TO ASSURANCE CLIENTS Introduction The intention of this essay is to critically discuss and explicate the fundamental aspects that surround the audit and assurance field. In order to evaluate the criteria below the following discussion points are to be analysed; the meaning and significance of independence in relation to provision of assurance services, the requirements of professional codes along with the current and emerging developments in respect of other provision of other services to assurance clients. I will also converse about the current and emerging developments in respect of the provision of other services to assurance clients. In addition, with all of these being addressed I will conclude on the possible solutions and future developments that can be put in place. An explanation and critical discussion of the meaning and significance of independence in relation to the provision of assurance services Auditor Independence is a crucial aspect of the credibility of the external audit as a monitoring device. Independence has been defined in terms of honesty, objectivity and a mental attitude. Shuetze (1994) argues that independence is an abstract concept, being defined by a state of mind party synonymous with honesty, integrity, courage and character. Independence of mind is defined as ‘the state of mind that permits the provision of an opinion without being affected by influences that impair professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional skepticism’ and independence in appearance is defined as ‘the avoidance of facts and circumstances that are so significant that a reasonable and informed third party, having knowledge of all relevant information, would reasonably conclude a firm's, or a member of the assurance team's, integrity, objectivity or professional skepticism had been unacceptably impaired’ (Marilyn A, 2001). Some researchers also argue that independence, as an attitude of mind is only attainable for individuals who hold a deontological view of life, perceiving certain actions as morally obligatory, regardless of the consequences that may result from these actions (Moizer, 1991). Independence is an important element in the engagement for assurance services. Assurance services are a class of services provided by certified public accountants (CPAs) in public practice. The Elliot Committee (1997) stated that assurance services ‘focuses on decision- makers and the information they use...assurance services attempt to help decision makers
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