| What are the two (2) unique threats to independence under this rule? | 1. Bias - The threat that an auditor will, as a result of political, ideological, social, or other convictions, take a position that is not objective
2. Structural - The threat that an AO's (Auditor Office) placement within a government entity, in combination with the structure of the entity being audited, will impact the AO's ability to perform work and report results objectively |
| How is a structural threat reduced to an acceptable level?
*three (3) ways* | 1. At a level of government other than the one of which the audited entity is a part, i.e., federal auditors may be auditing a state government program, or state auditors may be auditing a county government program
2. If the head of an AO meets any of the following criteria:
- Directly elected by voters of the jurisdiction being audited
- Elected or appointed by a legislative body, subject to removal by a legislative body
- Appointed by someone other than a legislative body, so long as the appointment is confirmed by a legislative body and removal from the position is subject to oversight or approval by a legislative body
- Appointed by, accountable to, reports to, and can only be removed by a statutorily created governing body, the majority of whose members are independently elected
3. Appointed by, accountable to, reports to, and can only be removed by a statutorily created governing body, the majority of whose members are independently elected |
| Continuing Professional Education (CPE), how many hours are needed? | Should complete at least 80 hours of CPE in every two-year period:
1. 24 hours of subject matter directly related to the government environment, government auditing, or the unique environment in which the audited entity operates; and
2. 56 hours of subject matter that directly enhances auditors’ professional expertise to conduct engagements. |
