Independence Is Considered One of the Key Characteristics of Auditors

question 44

Essay

Independence is considered one of the key characteristics of auditors.Explain why auditor independence is so important to the effectiveness of an audit and explain the various threats to an auditor's independence.

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Definitions:

Obligations

Duties or actions that an individual or entity is legally required to perform according to the terms of a contract or law.

Mutual Rescission

An agreement between all parties to a contract to terminate their respective duties under the contract.

Accord and Satisfaction

A legal agreement between parties to settle a dispute by one party paying a sum less than the amount originally owed and the other accepting it, effectively discharging the original claim.

Obligations

Duties or commitments imposed by law, contract, or moral responsibilities.