23 Jul HOW MIGHT AN AUDITORS ETHICS BE CHALLENGED WHILE PERFORMING AN AUDIT?
It is the responsibility of management to apply accounting standards when communicating with investo Show more It is the responsibility of management to apply accounting standards when communicating with investors and creditors through financial statements. Another group auditors serves as an independent intermediary to help ensure that management has in fact appropriately applied GAAP iin preparing the companys financial statements. Auditors examint (audit) financial statements to express a professional independent opinion. The opinion reflects the auditors assessment of the statements fairness which is determined by the extent to which they are prepared in compliance with GAAP. Some feel that it is impossible for an auditor to give an independent opinion on a companys financial statements because the auditors fees for performing the audit are paid by the company. In addition to the audit fee quite often the auditor performs other services for the company such as preparing the companys income tax returns. How might an auditors ethics be challenged while performing an audit? Show less
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