Factors to consider before accepting appointment as chief auditor

Analytical procedures issued in the planning stage of an audit, generally_______ Select one:   a. All of the others b. Directs attention to potential risk areas c. Helps to determine the nature, timing and extent of other audit procedures. d. Indicates important aspects of business

Concerning litigation, claims, and assessments, which of the following is an audit procedure that an auditor  Concerning litigation, claims, most likely would perform ? Select one: a. Confirm directly with the client’s lawyer that all litigation, claims, and assessments have been recorded or disclosed in the financial statements. b. Discuss with management its policies and procedures adopted for evaluating and accounting for litigation, claims, and assessments. c. Request the client’s lawyer to evaluate whether the client’s pending litigation, claims, and assessments indicate a going concern problem. d. Examine the legal documents in the client’s lawyer’s possession concerning litigation, claims, and assessments to which the lawyer has devoted substantive attention.

Critically evaluate the importance of auditor independence in adding value to the financial statements. With reference to a real case where auditor independence has been questioned, critically discuss the challenges to achieving auditor independence