Given the need for the auditor to be seen to be impartial and independent of the

client the overarching principles of integrity, objectivity and independence have been

established by Ethical Standards.

Required:

a$)$ Explain the significance of auditor independence in conducting a statutory

audit $(7$ marks$)$

b$)$ How do the general ethical threats as identified by the Ethical Standards

Board $($ESB$)$ help the statutory auditor to maintain their independence?

$(5\mathrm{.}5$ marks$)$

Total $12\mathrm{.}5$ marks