This study also uses a unique external auditor assessment of an auditee
characteristic (level of reliance on the IAF), and examines its influence on external auditor effort decisions.
The setting for the experiment was an audit engagement in which the auditor had rendered an unqualified audit opinion and the auditee
company had declared bankruptcy in the subsequent year.
For every audit, the auditor must currently test at least 50% of total federal expenditures as major in order to satisfy the percentage of coverage requirements, unless the entity is considered a low-risk auditee
, in which case a reduced level of 25% is permitted.
Establishing internal audit policies or strategic direction of the auditee
Further, it is commonly assumed that the payment of audit fees by the auditee
directly to the auditor creates certain independence problems.
Incentives for Auditor Independence: The case of Nonaudit Services.
How does your department handle requests by the auditee
to change the wording, format, or content of your reports?
Strategic Plan 2015-19 of DAGP emphasizes developing communication and cooperation with internal and external stakeholders through exchange of ideas and by arranging conferences and workshops for parliamentarians, media, donors and auditee
However, according to the response from the auditee
(MoWHS), the works were carried out as per the letter received from the office of the Cabinet Secretariat as a deposit work and the work was not in their planned activities in that budget year.
This is an attempt to intervene in the work of the audit office, it said, which takes the views of the auditee
and lists them and comments as it decides is best.
In particular, they will verify information on the legality and regularity of EU spending provided by the European Commission, their auditee
, while making better use of the work of audit authorities in Member States.