ACTIVIDAD COMPLEMENTARIA IV
Auditor independence
Auditor independence refers to the independence of the internal auditor or of the external auditor from parties that may have a financial interest in the business being audited.
Types of independence
- Programming independence
- Investigative independence
- Reporting independence
Real independence and perceived independenceThere are two important aspects to independence which must be distinguished from each other: independence in fact (real independence) and independence in appearance (perceived independence).
Independence of the internal auditor means independence from parties whose interests might be harmed by the results of an audit.
Independence of the external auditor means independence from parties that have an interest in the results published in financial statements of an entity.
The structure of the accountancy professionPrice competition is a major factor in auditor independence.
Auditor independence
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Created on October 31, 2021
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Transcript
ACTIVIDAD COMPLEMENTARIA IV
Auditor independence
Auditor independence refers to the independence of the internal auditor or of the external auditor from parties that may have a financial interest in the business being audited.
Types of independence
Real independence and perceived independenceThere are two important aspects to independence which must be distinguished from each other: independence in fact (real independence) and independence in appearance (perceived independence).
Independence of the internal auditor means independence from parties whose interests might be harmed by the results of an audit.
Independence of the external auditor means independence from parties that have an interest in the results published in financial statements of an entity.
The structure of the accountancy professionPrice competition is a major factor in auditor independence.