Importance of auditor independence

Importance of auditor independence

In 2014 the FRC published a research report ‘Improving Confidence in the Value of Audit’ which highlighted that:

“Concerns vary across different interest groups but are focused around the core issue of independence, which they understand to be vital to effective, quality Auditing.”

(FRC, 2014, p.6)

Requirement

Considering the statement above, you are required to submit:

• a critical evaluation of the importance of auditor independence in ensuring that statutory audit is a high quality product that meets the needs of stakeholder groups in the UK, including how auditor independence is regulated to enhance audit quality; and,
• a critical analysis of whether the expectations of stakeholders of auditor independence can be met in the UK, using examples to justify your comments with clear recommendations based on your analysis for improving auditor independence.

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