You will compose a 400–500-word discussion board thread in your group’s discussion board. Each threa

Aug 17th, 2016
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You will compose a 400–500-word discussion board thread in your group’s discussion board. Each thread must cite at least 2 sources in current APA format. Submit a thread on independence between the auditor and the client on financial statement audit engagements.

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Answer-------------------------IntroductionThe Sarbanes-Oxley Act of 2002 mandates that audit committees be directly responsible forthe oversight of the engagement of the company's independent auditor, and the Securities andExchange Commission (the Commission) rules are designed to ensure that auditors areindependent of their audit clients. The purpose of this brochure is to highlight certainCommission rules and other authoritative pronouncements relevant to audit committeeoversight responsibilities regarding the auditor's independence.Audit committees should also be aware that the PCAOB has Ethics and Independence RulesConcerning Independence, Tax Services, and Contingent Fees.General Standard of Auditor IndependenceThe Commission's general standard of auditor independence is that an auditor's independenceis impaired if the auditor is not, or a reasonable investor with knowledge of all the facts andcircumstances would conclude that the auditor is not, capable of exercising objective andimpartial judgment on all issues encompassed within the audit engagement. To determinewhether an auditor is independent under this standard an audit committee needs to considerall of the relationships between the auditor and the company, the company's management anddirectors, not just those relationships related to reports filed with the Commission. The auditcommittee should consider whether a relationship with or service provided by an auditor:(a) creates a mutual or

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