Professional Documents
Culture Documents
b) Self-interest threat exists as the amount in dispute is significant. The firm may be more inclined
to issue an unmodified audit opinion if it enhances its prospects of recovering the fee.
The ethics partner should be notified and a review of the audit work should be performed by a
partner not involved in the audit. If the threat cannot be reduced to an acceptable level then the
firm should resign.
c) Performance indicators which could be used by audit committees to monitor the quality of an
internal audit function.
Actual time compared to budget
Actual work completed compared to planned work
Number of reports produced within target dates
Number of recommendations accepted
Savings identified
Feedback from users
Results of third party reviews
Number of staff in post against planned requirement/staff turnover rates
Number of qualified staff.
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