Introduction
Auditor emancipation is one of the most important issues in method of accounting practices today. Independence increases the effectiveness of take stock by providing assurance that the hearer will plan and execute the audit objectively. (Myring and Rloom, 2003, p31). The role of the hearer is to confirm the reliability of the statements produced by managers, and go behind the info to find surface the evidences. So, the independence of the auditor is critical to the repute of auditing. But, since the accountancy practices do exist in a rattling commercial world, the auditor would be influenced by a widely range of nemesiss.
According to Glynn, Perrin and Murphy (1998), there are four briny threats to the auditors independence, namely, fee income, personal relationship, financial involvement, conflicting interests. The purpose of this try out is briefly to identify John and Michaels point of view on these threats and illustrate their impact on auditors independence.
The fee income
The first threat is called fee income .This is the most common threat to auditor. It could conclude into two part: audit fees and fees for other work.
In the first place, audit fees (Glynn, Perrin and Murphy, 1998, p122), is paid by the company for carrying out the audit practice.
In theory, the main shareholders should decide the amount of the audit fee as well as the auditors but genuinely it usually hand over the power to the directors. Thus, the influences from directors of the company give out a great threat to the auditor. In audit, the managers role is just like an examinee, if he has too much influence on the examiner, the result will obviously not reliable. So, keep the auditors independence far away from the directors influences is a key issue to propose a reliable audit result.
Except audit fees, the other important...
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