What are generally thought to be the principal threats to auditor independence?

Introduction Auditor emancipation is one of the around important passings in method of accounting practices today. Independence increases the effectiveness of take song by providing assurance that the hearer will plan and manage the analyze objectively. (Myring and Rloom, 2003, p31). The quality of the hearer is to confirm the reliability of the statements produced by managers, and go behind the info to find surface the evidences. So, the emancipation of the analyseor is critical to the repute of auditing. But, since the accountancy practices do cost in a rattling commercial world, the auditor would be work outd by a widely range of nemesiss. According to Glynn, Perrin and spud (1998), there are four briny threats to the auditors independence, namely, fee income, individualized relationship, financial involvement, conflicting interests. The purpose of this try knocked out(p) is in short to identify John and Michaels point of view on these threats and instanc e their impact on auditors independence. The fee income The first threat is called fee income .This is the most common threat to auditor. It could conclude into two part: audit fees and fees for opposite work. In the first place, audit fees (Glynn, Perrin and Murphy, 1998, p122), is paid by the company for carrying out the audit practice. In theory, the main shareholders should decide the amount of the audit fee as well as the auditors but real it usually hand over the power to the directors. Thus, the influences from directors of the company prevail out a great threat to the auditor. In audit, the managers role is just like an examinee, if he has too much influence on the examiner, the result will obviously not reliable. So, funding the auditors independence far away from the directors influences is a key issue to propose a reliable audit result. Except audit fees, the other important... If you involve to get a full essay, target it on our website: OrderEssay.net

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