• Length of Relationship
• Ex PWC employees in Senior Roles at Tesco
These issues are clear auditor independence problems and relate nearly to the risks to auditor autonomy as set out in the IESBA's code of morals. These are
• Self Interest threat
• Self-Audit
• Advocacy
• Intimidation
• Familiarity
This framework will be used to analyse how PWC position may have been compromised.
• Self Interest Threat: An auditor's objectivity can be influenced when matters …show more content…
They have 2,680 stores, it is the business sector pioneer in online grocery and Tesco Express is as yet developing rapidly. Given that the grocery store scene changes far slower than different areas, we're not going to see Tesco lose its balance as the business sector pioneer at any point in the near future. In any case, things can change – and they might just do as such if Lewis doesn't roll out those improvements quick.
Identification of threats safeguards to prevent or reduce to an acceptable standard. The center rule is that 'must the auditor be autonomous as well as be seen to be free' (Dignam and Galanis, 2009). The contextual analysis will investigate how these shields did (or as the case may be, did not) relieve the threats in the Tesco case.
• Self Interest Threat - Rules are in place over size of fees, the types of additional work auditors can do for their clients etc. While PWC are liable to have been inside of the letter of the tenets, they may have been outside the principle of them.
• Self-Audit Threat - Auditors have an obligation to audit the data that they are given. They are not there to create data in any case. While it is impossible they performed this part at Tesco, it stays to be checked whether they …show more content…
• Familiarity Threat - Rules are set up over the time span a specific audit accomplice can deal with a specific customer and there has been call to fix these principles in future. For example, power organisations to change auditor after a specific time span, or possibly put the audit out to