Hugo Crossman, CPA is an auditor of CUNY Company. During the year Hugo purchased some of CUNY's securities. CUNY Company asked Hugo to reissue a comparative two-year financial statement of the previous and the current year.
As an external auditor of a company, Hugo is fundamentally required to exercise independence of the audited firm. AU 220 requires the auditor to maintain independence in all matters of audit. The independence that recognizes an obligation for fairness not only to management, but also to those who rely on his work.
The auditor to the best of his ability must avoid conflicts of interest and would practice integrity in carrying out the audit work. It is further discussed in AU 220.03 that for an auditor to be independent,
As an external auditor of a company, Hugo is fundamentally required to exercise independence of the audited firm. AU 220 requires the auditor to maintain independence in all matters of audit. The independence that recognizes an obligation for fairness not only to management, but also to those who rely on his work.
The auditor to the best of his ability must avoid conflicts of interest and would practice integrity in carrying out the audit work. It is further discussed in AU 220.03 that for an auditor to be independent,