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1. In commenting on the findings in the consultant report, the then-chief accountant of the SEC, Lynn E. Turner, said, This report is a sobering reminder that accounting professionals need to renew their commitment to the fundamental principle of auditor independence. Why is it so important for auditors to be independent of their clients? Explain the nature of the independence impairments at PwC with respect to the threats to independence discussed in the chapter.
2. Review question 19 at the end of the chapter and the PeopleSoft case in the chapter. What are the commonalities between the facts of these two cases with respect to independence violations and the facts of PwC independence violations? How might the independence violations in these cases negatively affect the ability of an auditor to be objective in performing professional services and maintain her integrity?
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