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Assignment: Discussion-Auditor Independence
An auditor must not only appear to be independent, but must also be independent in fact. Research the concept of "auditor's independence" using your textbook, the online library resources, and the Internet. Respond to the following:
• Explain the concept of "auditor's independence" as it applies to third-party reliance on financial statements.• Provide a specific example of how an auditor may be independent in fact, but not appear to be independent.• There are several rules that dictate independence. Explain what is meant by independence and independent mental attitude.
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If the auditor finds one receivable that is overstated by $55,000, what should the auditor do?
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