Week 9 Essay Example | Topics and Well Written Essays - 500 words - 1

Week 9 - Essay Example This is very critical to the audit process. It has been combined with foundational concepts. However, I think that ethics it should be the only matter dealt with in this chapter. Since independence falls under this heading it should also be included. The importance of independence has been stressed in a number of instances and the lack of it has been blamed for a number of events. In relation to independence an auditor should never be required to give an opinion on his own work. If the same auditors are engaged in setting up internal controls inclusive of information controls they may be pressured by their colleagues against reporting on the discovery of major weakness. The auditor engaged in giving an opinion on how management has carried out their responsibilities and giving an opinion should not be engaged in any other activity with the entity. Therefore the standards need to go further in not allowing any other work whatsoever as it certainly will affect independence. This matter should be ted into threats and safeguards. The best safeguard is to quit. There will therefore be no consideration of some of the other matters which relating to the provision of non-audit services. In relation to quality control issues the additional requirement to include systems that address additional areas is a step in the right direction as all areas of an organization should be monitored as they affect the financial and other aspects and are therefore interrelated. If there is no proper leadership then the system of control will break down since management will be ineffective. In terms of the elimination of requirements already included in AICPA this will leave room for additional requirements to be added later. The additional guidance is important as it addresses the need for technical assistance. However, it might have been beneficial for those who prefer to find as much as possible in one place if the rules were not