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The GAO professional framework includes
The GAO professional framework includes the application of appropriate safeguards. As stated under Governmental Accounting Standards section 3.08, “Auditors should apply the conceptual framework at the audit organization, audit, and individual auditor levels to apply safeguards as necessary to eliminate the threats or reduce them to an acceptable level.”
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A member is serving as an engagement partner. He invests heavily and has a portfolio of government bonds of a government client. This is an example of a:
The partner's investment in government bonds of a governmental client creates a financial threat. This threat falls under the self-interest threat as expressed in the GAO Conceptual Framework Standards: “Self-interest threat - the threat that a financial or other interest will inappropriately influence an auditor’s judgment or behavior.”
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Internal auditors are considered independent for internal reporting purposes:
Internal auditors that are accountable to the government agency head are considered independent for internal reporting purposes. Under section 3.31 of GAGAS; “Certain entities employ auditors to work for entity management. These auditors may be subject to administrative direction from persons involved in the entity management process. Such audit organizations are internal audit functions and are encouraged to use the Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing in conjunction with GAGAS. In accordance with GAGAS, internal auditors who work under the direction of the audited entity’s management are considered independent.”
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GAGAS specifically include all of the following ethics principles except:
GAGAS ethics do not include specific references to fraud detection. Ethics covers the public interest, integrity, and proper usage of information.
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The GAGAS framework for independence identifies inappropriate influence on auditor judgment or behavior caused by a financial or other interest as a:
The self-interest threat is that a financial or other interest will influence an auditor's judgment or behavior inappropriately.
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Of the following threats to independence identified by GAGAS related to a threat of external influence?
The undue influence threat relates to how an external factor can impact an auditor's independence.
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