Tutorial_12 - Tutorial 12 1(a Describe an audit committee(b...

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Tutorial 12 1. (a) Describe an audit committee (b) What are the main functions of an audit committee? (c) Explain how an audit committee can help an auditor to be more independent 2. (a) Why is independence so essential for auditors? (b) Compare the importance of independence of auditors with that of solicitors (c) Assume that a partner in a public accounting firm has 200 shares in a large client’s company. The ownership is n insignificant part of his total wealth. Has the partner violated the independence requirements? Explain whether the ownership is likely to affect the partner’s independence in fact. Explain the reason for the strict requirements about equity investments in the independence requirements (d) Discuss how each of the following could affect independence in fact and independence in appearance, and evaluate the social consequences of prohibiting auditors from doing each one. (i) ownership of shares in a client’s company
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This note was uploaded on 07/31/2011 for the course MGMT 2027 taught by Professor Shak during the Three '07 term at Queensland.

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Tutorial_12 - Tutorial 12 1(a Describe an audit committee(b...

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