What happens if Family or Close Relationships exist between an Auditor and the Client?
Where family or close relationship ties between an auditor and their client, three different sorts of conflicts might arise that threaten the auditor’s independence and objectivity. These threats are as follows: Example: Self-Review Threat An accountant suggested a new strategy to an organisation she prepared the accounts for. She has since been asked to examine […]
What gives rise to a threat to an Auditor’s Independence and Objectivity, and how to deal with it?
Professional accountants and auditors must comply with a Code of Ethics (such as the IESBA’s Code of Ethics for Professional Accountants) (the Code). Many professional bodies worldwide have adopted the IESBA’s Code and made certain amendments to it to be country-specific. But, for the most part, the IESBA Code applies to most professional bodies and […]