External Audit And Non Audit Services Essay

1144 WordsDec 12, 20165 Pages
External Audit and Non-Audit Services Introduction An external auditor carry out the audit work,according to particular rules or laws of the financial statement corporation, government agencies, other juridical entity, as well as the independent implementation of the audit commissioned. External audit is actually an important systematic inspection, which aim at false behavior within the enterprise and deceptive behavior. The advantage of external audit is to ensure the fairness and independence of the audit. However, the external auditors do not understand the internal organizational structure, production processes and operating characteristics, So difficulties may arise in the audit of the specific business. Non-audit services refer to other authentication services, consulting services and other services other than audit services. This essay will discuss whether the provision of non-audit services by external audit firms is advantageous or disadvantageous, and explain how regulators can reduce the threat posed by such regulations. Disadvantage and disadvantage There are some advantages of using external audit firm for some non-audit services. The external audit firm can develop expertise which used in some business areas and specific industries that other form of consultants could not match(Quick and Warming-Rasmussen, 2009). To provide non-audit services, such as management consulting, can make the firm does not improve the audit resources investment(Habib, 2012).
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