An understanding of the independence of an auditor in an organization

History[ edit ] IOSCO was born in from the transformation of its ancestor the "Inter-American Regional Association" created in into a truly global cooperative. This decision to expand the organisation beyond the Americas was made at the annual gathered in QuitoEcuadorin April Securities regulators from FranceIndonesiaKoreaand the United Kingdom were the first agencies to join from outside the Americas.

An understanding of the independence of an auditor in an organization

Collecting data outside traditional audits or reporting performance Independence is an important and still evolving issue with respect to auditors and performance measurement. Government auditors not only must carefully assess how they will play new roles and with respect to independence, but also must keep abreast of evolving standards and re-assess their existing practices as standards of auditor independence change.

General Accounting Office GAO put special emphasis auditor independence, and on the need for auditors who deliver nonaudit e. Nonaudit services that do not impair auditor independence Nonaudit services that would not impair independence if supplemental safeguards are implemented supplemental safeguards are described in paragraph 3.

Independence and Advocacy or Assistance by Auditors Among auditor practices that could impair independence are those involving advocacy or assistance to management or other decision makers, such as: Help choose measures or targets; Practice 4a: Encourage management; Practice 5a: External advocacy; Practice 5c: Assist external decision makers.

Examples of nonaudit services in the Yellow Book suggest that auditors performing such advocacy or assistance practices can avoid impairment of their independence if it is clear that the auditors are providing technical advice, assistance, speeches, presentations, or training, and not making decisions for the entity they audit.

Independence Issues

In many cases, such nonaudit services can fall into the first category above of clearly not impairing independence. See examples in paragraphs 3. Some of these nonaudit services e. These kinds of advocacy and assistance practices have been central to leadership roles some audit organizations have played in advancing performance management in their government, such as those in the City of Portland, Oregon, the City of Austin, Texas, and the State of Florida.

In the research that led to publication of the guide, Auditor Roles in Government Performance Measurement, researchers asked a number of leaders in audit organizations that perform these practices about independence issues.

Primary tabs

Most emphasized that however much research or assistance they provide, or advice they offer in developing measures or systems, management or policy officials always make the final decisions on what performance measures to adopt for management or decision making, and what systems to implement or improve.

Hence, they felt that under those circumstances, they could play these roles without impairing their independence. Independence and Data Collection or Performance Reporting Practices Other practices documented on this website that could raise questions about auditor independence include Practice 3b.

Collect data outside the traditional audit process and Practice 5b.

Financial audit - Wikipedia

For example, common activities done by auditors under practice 3b are to conduct surveys or focus groups of citizens, service customers, or business owners.

When auditors issue external performance reports practice 5b potentially intriguing independence issues could emerge, depending on the context of the report and the data reported, and other practices performed by the audit organization.

For example, auditors that issue performance reports often check or test performance information Practice 2a.

An understanding of the independence of an auditor in an organization

Test relevance or reliability before reporting it.Auditor Skills 1. Communication –Both oral and written, a person who can be effective with a variety of audiences and at persuasion to secure needed action.

2. Experience –Must be broad and encompass the product, manufacturing and support technologies. As billpayer-in-chief, your county auditor approves or rejects county agencies’ check requests to make sure that your tax dollars are spent properly.

Introduction. Purpose.

17 CFR Parts 210 and 240

A component of performing a compliance audit is the gathering of evidence to support audit findings. The regions, as delegates of NERC, perform compliance audits and exercise a degree of independence; historically, this meant. My Adventures By Wade Frazier. Revised April Introduction.

An understanding of the independence of an auditor in an organization

Believing in the Easter Bunny. Learning the Truth about the Easter Bunny. Hitting Rock Bottom and Meeting Dennis Lee. by Pretesh Biswas, APB Consultant.

ISO Clause Internal Audit Definition: ISO defines audits as “Systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.” Internal audits, sometimes called first-party audits, are conducted by, or on behalf of, the organization itself.

Rule T. Interim Ethics and Independence Standards. (a) In connection with the preparation or issuance of any audit report, a registered public accounting firm, and its associated persons, shall comply with ethics standards, as described in the AICPA's Code of Professional Conduct Rule , and interpretations and rulings thereunder, as in existence on April 16, (AICPA Professional.

International Organization of Securities Commissions - Wikipedia