ACC 821 Lecture Notes - Lecture 3: Blackboard, Disclose, Earnings Management
20 Nov 2014
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The canadian independence standard includes prohibitions and threats to independence: what is a prohibition, provide three specific examples. Practice doing questions on blackboard: write out the answer and then go back and check it, why am i writing this. Identify threats in standard and one specific example. Intimidation threats or perceived threats so professional skepticism cannot be properly exercised. Disclose all relationships btw the auditor and his/her related businbeesses or practice and the entity and its related entites that are thought to bear on independence. Otherwise (ie, if these were made on conditions other than normal lending), independence would be impaired by virtue of the financial rela btw the auditor and the lender. Made by financial institutions to the pa under normal lending procedures, terms and require,ets. Pas are considered not independent when company mgmt. threatens or starts a suit against the pa, or when the pa threatens or starts a suit against the company.
