Prepare Answer Plans, to enable you to contribute to a group discussion in the tutorial, for the following questions:

Auditors

1. What are the implications of requiring the auditor to seek reappointment on an annual basis?

2. An auditor of a limited company has to remain independent from the directors of that company yet the directors represent the auditors client for most practical purposes. Discuss this potential conflict.

3. How might Audit Committees help to enhance the independence of statutory auditors?

4. a) What are the main reasons that the auditing profession is regulated?

2. Discuss the advantages and disadvantages of the main options available for regulation of statutory auditors

5. Compare and contrast the regulatory approach to the regulation of statutory auditor independence in the UK and US.

Which approach do you prefer and why?