If You Need

Topics: Audit, Financial audit, Deposit account Pages: 3 (883 words) Published: September 27, 2012
If You Need Love Get a Puppy.

Auditing Guidance:

AU § 150.02:
This is the standard on independence in mental attitude in all matters relating to the audit. The auditor needs to be aware of any personal factors that could impair his independence and objectivity.

AICPA Code of Professional Conduct ET Section 101.02 Rule 101- 1 Independence:
This section outlines specific relationships that impair auditor independence. There is a provision for other considerations that defines the reasonable person test for determining if there is a threat to independence.

1. Professional skepticism is an attitude of a questioning mind and a critical assessment of evidence. 2. Will exercised professional skepticism in a number of ways. One example was not ignoring the use of two different color inks by the same person on the same day. He pursued further through a closer examination of the bills, carefully noticing the deposit slip predated the bills print date by a year. Another example was when Will did not see the cash deposit on the bank statement; he discovered a pattern of missing cash deposits. 3. One condition that could have limited Will’s skepticism was auditing the workplace of his best friend’s wife, Jess. Will was at times hesitant to heavily question Jess for fear of damaging their personal relationship. Other conditions that may have limited Will’s skepticism were his inexperience, receiving reasonable explanations for missing documents, and the advice of the audit partner to expect imperfection. Had Will ignored professional skepticism, he would have overlooked patterns and ignored evidence of fraud. 2.

4. According to AU § 150.02 the statement on generally accepted auditing standards, in all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditor or auditors. 5. Independence in appearance is appearing independent from an outsider’s perspective. This is...
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