What are the consequences of not auditing?

Audit failures are routinely implicated with loss deposits, loss of employments and loss of livelihoods of individuals. Example of audit failures and its effects to individuals: The damage done to people’s lives by audit failures is well documented.

What is impartiality in auditing?

Impartiality is the principle holding that decisions are based on objective evidence obtained during assessments/inspection, not on the basis of bias or prejudice caused by influence of different interests of individuals or other involved parties.

What Behaviours do you think an auditor should exhibit?

According to the Auditing Guidelines standard, auditors should exhibit professional behavior during the performance of their audit activities, including being:

• ethical. fair, truthful, sincere, honest, and discreet.
• open-minded.
• diplomatic.
• observant.
• perceptive.
• versatile.
• tenacious.
• decisive.

What is the main responsibility of an auditor?

02 The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud.

What are possible consequences of failing a compliance audit?

These costs and loss of productivity will come out of your pocket! Lost Reputation – If you fail a compliance audit and don’t redress the issues which lead to a breach, your damaged reputation could end up costing you a large segment of your client base, and could take a long time re-build.

What are the major causes of audit failures?

Top 10 things that can cause audit failure

• HACCP failure.
• Human error.
• Lack of supplier compliance.
• Importing food.
• Being unprepared.
• Not controlling risk factors.
• Poor employee hygiene.
• Not sanitising processing areas and equipment.

What is meant by objectivity and impartiality of an auditor?

Impartiality is about being neutral and fairly giving all sides an equal value without bias. Objectivity is all about sticking to the observable facts without bias. They are both different methods for overcoming our personal bias.

What is an example of impartiality?

For example, while having food and clothing is clearly a good, it seems that I have a special obligation to my own children over the children of strangers to make sure that they have food and clothing. So we have two moral claims: Impartiality: When it comes to morality, we should be impartial.

How do you behave in an audit?

Auditee should behave open, honest and should clearly communicate to build trust and confidence. Any misunderstanding or uncertainty should be clarified as soon as possible. Immediate action on potential deficiencies is often regarded as positive attitude.

What makes a good quality auditor?

These qualities include having competence, communication skills and employing professional scepticism. Furthermore, auditors need to maintain their objectivity and integrity during the audit. Lastly, they need to demonstrate time management, decision-making and leadership skills.

What ethics should the auditor uphold?

Internal auditors are expected to apply and uphold the following principles:

• Integrity. The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
• Objectivity.
• Confidentiality.
• Competency.

What are the rights and duties of auditors?

Rights of Company Auditor: The Companies Act, 1956

• Rights to access the books and records.
• Right to get explanations from company staff.
• Right to receive notice of general meetings.
• Right to visit branches.
• Right to seek legal and technical advises.
• Right to claim remuneration.
• Right to refuse to commence the audit.

What are the consequences of not having a diplomatic approach to audit?

and when the auditor is not diplomatic then he will use undeceive language with auditee and his own audit team during audit stage 1 and stage 2 and asking question for required documents information with no clear elaboration and purpose of the document information etc. it will effect the audit time management

What is the behavior of an auditor?

Auditor Behavior. Confidence in the audit process and its ability to achieve the audit objectives depends on the competence of the individuals who are involved in planning and conducting audits, including auditors and audit team leaders.

How do partner differences affect audit quality reduction behaviours?

Differences of interest between partners and other firm members can then have adverse consequences on the work motivation of field auditors. In particular, audit quality reduction behaviours are defined as actions taken by an auditor during an engagement that reduce evidence-gathering effectiveness inappropriately.

Why is audit quality difficult to gauge?

However, audit quality is difficult to gauge, which makes it particularly sensitive to the behaviour of the individuals who carry on audit work. Differences of interest between partners and other firm members can then have adverse consequences on the work motivation of field auditors.