How Independence and Commercialism Can Coexist

Independence-Myths and Biases The recent news concerning EisnerAmper's restructuring following a "significant" investment from TowerBrook Capital Partners has once more highlighted the continuing structural and commercial changes in the accounting profession that continue to give rise...

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Bibliographic Details
Published in:The CPA journal (1975) 2022-01, Vol.92 (1-2), p.6-9
Main Author: Love, Vincent J
Format: Article
Language:English
Subjects:
Accounting
Accounting firms
Analysis
Assurance services
Auditing standards
Audits
Autonomy (Philosophy)
Bias
Contingent fees
CPAs
Financial statements
Management
Objectivity
Professional ethics
Violations
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Summary:Independence-Myths and Biases The recent news concerning EisnerAmper's restructuring following a "significant" investment from TowerBrook Capital Partners has once more highlighted the continuing structural and commercial changes in the accounting profession that continue to give rise to ethical concerns surrounding the delivery of diverse consulting services by firms that also provide attest services to those clients. Given that a CPA firm serving an attest client is in an ideal position to quickly understand and resolve operating issues, especially in the case of smaller businesses and their outside auditors, it is important for firms to address these "state-of-mind" independence issues. First and foremost, independence is a state of mind; nevertheless, although threats can be mitigated, "unconscious bias" or "arrogance" cannot always be effectively neutralized. [...]no system is fail-safe; usually, it is not at the firm level but at the engagement partner level where the specter of unconscious bias, and arrogance, comes into play. [...]can small firms with less administrative resources develop safeguards that are comparable to those at the larger firms?
ISSN:0732-8435