Independence. Discuss What Audit Independence Is and Why It Is Important

question 63

Essay

Independence.
Discuss what audit independence is and why it is important to the audit firm and the profession. What are some major threats to audit firm independence and what are some of the steps that audit firms and the profession have taken in addressing those threats?

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Definitions:

Deficit

The amount by which expenses exceed income or costs outstrip revenues, typically referring to governmental budgeting.

British Importer

A company or individual in the UK that buys goods from foreign countries to sell in the domestic market.

American Wheat

A term referring to wheat produced in the United States, which is a major global exporter of the grain.

Euro

Nineteen of the twenty-seven member states in the European Union use a standard currency, often called the eurozone.