Got a tricky question? Receive an answer from students like you! Try us!

Why auditor must to be objective and independent? - Essay Example

Finance & Accounting
Pages 8 (2008 words)
Download 1


Issues such as fraud, misappropriation of company funds and misrepresentation of organizational financial statements are common in different types of the media across the globe…

Extract of sample
Why auditor must to be objective and independent?

In order to successfully carryout this feat, it can be seen that independent auditors play a significant role in the functioning of global capital markets. As such, this paper has been designed to evaluate the main reasons why auditors must be independent and objective in their operations. The main part of the paper will focus on why focus in terms of auditing financial statements of different companies is put on aspects such as objectivity as well as independence of the auditors who carry out different tasks related to financial reporting in the company. According to Kueppers & Sullivan (2010), the audit profession plays a very significant role in the functioning of the global capital markets and it also adds value to various roles played by different stakeholders in financial reporting in an organization. However, the effectiveness of an audit is reflected by the absence of failure of business or fraud after it has been completed. ...
Download paper
Not exactly what you need?

Related Essays

Differences between internal and external audit
Differences between internal and external audit Internal and external audit differs in terms of objectives, scope, level of independence of the auditor, and methodology. Objectives The internal auditor’s objective is to ensure that sound risk management and control systems are in place to prevent errors and fraud from occurring. The external auditor’s objective on the other hand is to ensure…
12 pages (3012 words)
The effective steps for risk assessment to identify the risks regarding the misstated data in the financial records
The analytical procedures can be described as ‘evaluating the financial records by analyzing the credible relationship between the financial records and non-financial records’. It can be also included that ‘such analysis is mandatory to identify the difference or inconsistency of relevant data or the difference between provided data and the estimated values’ (ISA/HKSA 520(4). The basic…
7 pages (1757 words)
Auditor scepticism is an increasing concern for the profession and stakeholders of UK Companies
Despite of that, some companies still comes up with unreal data and manages to evade tax. According to reports, the major reason behind this phenomenon is the reduced scepticism level among the auditors. In UK, due to reduced scepticism among the auditors, stakeholders are finding it difficult to make proper decision pertaining to investment. As before investing, it is essential for the…
10 pages (2510 words)
Recommendation Brief for an Internal Auditor
The author adds that an internal auditor has a crucial role to play in each and every phase of business activity. To illustrate, an internal auditor needs to go beyond financial records to obtain a deep understanding of the business operations under consideration. It is the duty of an internal auditor to review and appraise the soundness and feasibility of existing financial and other operating…
3 pages (753 words)
Envalue the Auditor Independence Provisions
This essay summarises the concepts, that are used today in the legal regulatory framework, and identifies the conceptual framework of auditor’s independence. Apart from this the regulations for auditor independence that also are discussed in the essay by the researcher, with respect to European Union, as this will assist in analysing how the auditors can keep their personal interest aside and…
5 pages (1255 words)
Does the rotation of auditors improve the quality of auditing?
ntial advantages of MAR fail to outweigh costs incurred and other associated risks. 3 In this context, the essay will review the available literature that analyses whether rotation of auditors improve quality of auditing. It will use deductive reasoning to derive that while there are not much empirical data that prove MAR significantly improves audit quality, at the same time, there is not much…
7 pages (1757 words)
The Role of Safeguards in Strengthening Independence
Independent auditing is encouraged in organizations in order to protect the potential investors and shareholders from any mis-representation of the financial statement or fraudulent claims that are often made in the public companies (Gray and Manson, 2008: 98). Moreover, after the Sarbanes-Oxley Act (SOX) introduced in 2002, the appointment of independent auditor becomes mandatory for improving…
8 pages (2008 words)