Threats to the Independence of Auditor

 Threats to the independence of Auditor

Threats to the independence of Auditor

The independence of the Auditor is one the most imperative condition of worldwide principles of Auditing.

If the Auditor is not established to be independent and the Audit is done by same auditor than the audit shall stay behind illogical.

That's why independency of the auditor is also a part of concluding result of the audit i.e. Audit statement.

The exterior auditor must be self-governing from the directors otherwise his description will have little worth.

If he is not self-determining, his estimation is likely to be partial by the directors.

In dissimilarity to exterior auditors, internal auditors may not be fully self-regulating from the directors, although they may be able to attain a satisfactory degree of self-determination.

Following are the principled threats to the self-rule of auditor

·       Self interest

·       Self-review

·       Advocacy

·       Familiarity

·       Intimidation