Week 15 - Integrity, Objectivity and Independence

Question 1

Why do independence and objectivity matter?

Answer 1

Because of the trust clients and the public have in the assurance provider

Question 2

What should happen when independence and objectivity are at risk?

Answer 2

Safeguards should be implemented

Question 3

What should happen if the risks are too great for safeguards?

Answer 3

The assurance provider should not accept or should withdraw from the engagement

Question 4

Define integrity

Answer 4

This means that an accountant must be straight-forward and honest. It implies fair dealing and truthfulness

Question 5

Define objectivity

Answer 5

This is a state of mind that excludes bias, prejudice and compromise and that gives fair and impartial consideration to all matters that are relevant to the task in hand, disregarding those that aren’t

Question 6

Define independence

Answer 6

It is related to and underpins objectivity - freedom from situations and relationships that make it probable that a reasonable and informed third-party would conclude that objectivity is either impaired or could be impaired

Question 7

What is another way to think about objectivity and independence?

Answer 7

Objectivity relates to the state of the accountant’s mind, and independence relates to the circumstances surrounding the situation