Chapter 24 - Completion + Professional Judgment

Or n the degree to which ones judgment is affected by

Info icon This preview shows pages 15–20. Sign up to view the full content.

by the client. Or n The degree to which one's judgment is affected by the client. n Independence: n In appearance – assurance n In fact – audit quality
Image of page 15

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

+ What Affects Independence? n Individual n Financial interests – code n Familial interests – code n Managerial interests – code n Long relationships – rotation (SOX) n Future relationships – revolving door (SOX) n Audit Firm/Office n Size n Reputation n Expertise n Conflicting Services - SOX
Image of page 16
+ What Keeps Auditors Independent? n Ethics n Skepticism n Professional Code of Conduct n Litigation Risk n Accountability/Review Process n Decision Aids n Training
Image of page 17

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

+ Ethics n Ethics - A set of morals/values/principles upon which one evaluates rightness/wrongness of one's behavior. n Includes: honesty, integrity, fairness, respect, loyalty, justice, etc. n Problems? n gray areas, conflicting ethics n the ability to rationalize
Image of page 18
+ Skepticism An attitude that includes a questioning mind and a critical assessment of evidence. "An auditor should not be satisfied with less than persuasive evidence because of a belief that management is honest" - SAS 99 n May include: A. Objectivity in evidence evaluation B. Discount ALL evidence C. Suspicion "Evaluate information (evidence) and keep a questioning mind in the context of (1) source credibility (knowledge, independence), (2) consistency with other information (evidence), and (3) general reasonableness” Note: Keep the feelings out of it!
Image of page 19

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

+ For Thursday, 3/21 n Read Case 6 on Scholar n Focus on Biases/Heuristics n Review Chapter 10 (p. 294-302) + COSO Chapters
Image of page 20
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '08
  • YARDLEY
  • appropriate audit evidence, audit committee, Audit documentation review

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern