As an auditor, comment on the following situation During the audit period, the liaison officer deputed the client constantly asks you to participate in lunch arranged outside office premises. He has also informed you that there is a program of welcome and farewell dinner too. Liaison officer has also informed you that you need not worry about time schedule, as there would be someone available among client’s staff to bailout if needed. Daily newspapers and magazines are made available in plenty in the audit room. Other staff of the client are also having regular visit in the working area.

Auditing and Assurance Revision Questions and Answers

Answer

An auditor is expected to maintain the highest degree of integrity, professionalism and independence. He represents the trust and faith of the whole professional body. There could be various obstacle and impediments while conducting his professional duty. However, he should remain intact and vigilant towards achieving his professional goal. Receiving tea etc. is not the problem as courtesy but it must be seen that there would be no compromise in the professional ethics and standards.
Also, the auditor has to be aware whether the exchange of significant gifts and hospitality creates the familiarity threat. (Students are advised to briefly explain the context of Familiarity Threat)



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