When auditors report to the auditee and not to the governing body, they are suffering a structural threat to independence.
The Familiarity Threat
When an auditor thinks twice about telling the truth due to fear of hurting the auditee, they are experiencing the familiarity threat.
The Undue Influence Threat
If the auditee seeks to control the outcome of the audit, auditor independence and objectivity are compromised by an Undue Influence Threat.
Accounting’s Big Lie: A Colossal Conflict of Interest
Accountants in public practice should be independent when providing auditing services. But are they truly independent when the auditee pays their fees and has the ability to fire them?
Active Voice: How Does My Computer Know?
Active voice is generally preferred over passive voice, but there are some instances when you want to use it in an audit report.
Independence is Required of a CPA Performing Yellow Book Audits
It is no surprise that independence is required of a CPA performing Yellow Book audits, but what does surprise many CPAs is how directly the GAO addresses one bad habit that CPA’s continue to engage in.
What Do You Talk About in an Audit Entrance Conference?
The audit entrance conference may be the first time the auditee sees you and has a chance to interact with you. So, you don’t want to go in cold.
What Is In The Background Statement?
A background statement could belong in the back of your audit report in an appendix instead of blocking the reader’s path to the good stuff.
Audit Quality Control Standards per the GAO’s Yellow Book
If you are currently part of the AICPA’s peer review program, the Yellow Book’s audit quality control standards won’t surprise or annoy you.