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:

Political Parties

Organized groups of people with similar political ideologies and objectives that seek to influence public policy and government by getting their candidates elected to office.

Class

A system of ordering society wherein people are divided into sets based on perceived social or economic status.

Distribution of Power

The way authority and control are spread across individuals or groups within an organization or society.

Power Resource Theory

A theory in political economy and sociology that analyzes the power of social groups, especially in terms of their ability to organize, mobilize resources, and affect social change.