Here are five characteristics of an auditor that are vital in the trade. The governing board should be able to ask the internal auditor give them a true picture of what is going on inside their entity. Both parties agree that the independence issue is not a problem. Keep a copy Keep a copy of everything you give the auditor. The auditor should honestly identify weaknesses in the controls, give balanced criticism and make logical recommendations. I have only one problem with that statement. In a State-Owned Enterprise (SoE) with commercial objectives, his presence certainly does more harm than benefit. The entityâs management c. The entityâs audit committee. 2 - The auditor must be independent of the auditee unless the auditor cannot lack independence 3 - The audit committee generally includes senior executives of the organization. Which of the following describes the PCAOB generally accepted auditing standard requiring a critical review of the work done and the judgment exercised by those assisting in an audit at every level of supervision? The lack of independence does not influence his or her professional judgment. The governing body is supposed to be able to rely on them to uncover and report on risks to the organization. 13. B. Audit independence: concept and application. Both parties agree that the independence issue is not a problem. The opinion itself shall be credible and for that the auditorâs objectivity shall be beyond question. Have the Required Experience. The auditor's report(s) may be in the form of either combined or separate reports and may be organized differently from the manner presented in this section. Further information on independence can be found in EPA publication 953. By focusing on goals rather than obstacles, the internal auditor can maintain a positive demeanor even when others are uncooperative or hostile. This opinion intends to enhance credibility of the financial statement. 2: Licensing of Auditors Pursuant to Section 215.97(8)(f), Florida Statutes, and Chapters 10.550 and 10.650, Rules of the Auditor General, FSAA audits must be performed by independent certified public accountants (CPAs) licensed pursuant to Chapter 473, Florida Statutes. External auditors are independent of the organisation they are auditing. The results showed that, in the view of independent auditors, audited audit committee, extent and experience of audit firms and the extent of the auditee 's firm are considered as factors enhancing auditor independence, and professional competition is considered as the factor decreasing the auditorâ¦ No one can know whether an interest will affect an auditor's objectivity, certainly not in advance of the judgments that could provide evidence of objective behavior. They report to the companyâs shareholders. The auditor must be independent of the auditee unlessâ¦ Question 13 options: 1) the lack of independence does not influence his or her professional judgment. D. None of the above--the auditor â¦ This International Standard on Auditing (ISA) deals with the auditorâs responsibilities in agreeing the terms of the audit engagement with management and, where appropriate, those charged â¦ However, we must not come into the false conclusion that the presence of the Auditor General is the way to root out corruption. The auditor must be independent of the auditee unless D. None of the aboveâthe auditor cannot lack independence. Without a plan, the methods used to achieve the objective tend to become random actions with no interconnection. The entityâs internal auditors d. The entityâs board of directors. C. The lack of independence is insignificant. Materiality concepts have been applied in the past, but not always by name. Then the board can make an informed decision on what to do about the risks. 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