Essay about External Auditors Must be Independent

Independence of external auditor By:- shubham kanchhal Auditor independence refers to the independence of the auditor from parties that may have a financial interest in business being audited. Independence requires integrity and an objective approach for the audit process. This concept requires the auditor to carry his work freely and in an objective manner. The purpose of an audit to enhance the credibility…

decade owing to partly serious corporate governance deficiencies, among other challenges. As a result, the research serves to highlight, hint and encourage all the relevant stakeholders to establish proper corporate governance structures in which the auditor is tasked to review and evaluate the effectiveness and efficient of the structures. Corporate governance measures and other incentives are unveiled by the top-level management in various companies to create a platform for companies to transform…

The CPA as External Auditor This essay examines the role of the CPA as external auditor and discusses their impact in on investor trust. The essay discuses investor goals in financial statement review, and their reliance upon the CPA to make certain that financial reports issued by companies provide reliable information. When individuals and companies make investment decisions, they rely on accurate information to help them arrive at their decisions. One source of information for potential investors…

effective in preventing major scandals on the lines of Enron and Worldcom. 1.0 ABSTRACT 2.0 ENRON-CORPORATE FIASCOS 3.0 HOW DID THE AUDITORS FAIL TO CATCH PROBLEMS AT ENRON? 4.0 HOW TO PREVENT RECURRENCE OF ENRON? 5.0 NEW RESPONSIBILITIES OF AUDITORS ACCORDING TO SARBANES-OXLEY ACT 2002 6.0 CONCLUSION 7.0 REFERENCES 1.0 ABSTRACT The responsibility of an auditor is to express an opinion on the financial statements based on his audit which means verification or check in accordance with International…

Why is it important for external auditor to be independent? Throughout the years, banks, shareholders, possible investors and creditors always relied on the financial statements produced by a company. Since the management of a company is producing these documents it has been assumed that the managers may act dishonestly so that their performance looks better. To monitor the company’s performance better the directors along with the shareholders employ external auditors to check all these financial…

only when it performs such functions.[3] 1.1 Audit Committees Audit committee is a committee consisting primarily of non executive directors which is able to view a company’s affairs in a detached and independent way and liaise effectively between the main board of directors and the external auditors. An audit committee is set up to meet the practical difficulties that may arise in the board of directors fulfilling its task of ensuring the existence and maintenance of an adequate system of internal…

for external auditors to be independent? Relate your answer to the primary role of external auditors? By Zachariah Godfrey-Plews This essay has asked me to look at the importance of external auditors and why it is vital for them to remain independent. I will try and look at the many ways of the advantages of independent auditing from different perspectives for example the company itself, the general public and the state. I think it is important to first define what an audit and an external auditor…

Individual Coursework Essay Topic: Why is it important for external auditors to be independent? Relate your answer to the primary role of external auditors. Give examples of specific ways the lack of auditor independence may impact adversely on an audit. In 2001, there was an event that had shaken the whole business world. The crash of Enron in US, followed by worldwide collapse of its auditor, Arthur Andersen. It was a greatest corporate failure uncovered in…

THE NORTH FACE, INC.: An analysis of Instructional Case Focusing on Ethical Issues Involving Financial Accountants and Independent Auditors Questions 1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given set of financial statements? Defend your answer. To confirm that materiality is a pervasive concept in auditing, simply refer to…

Quistions on Academic Research Case The need for an Internal Auditor Report to External Stakeholders to Improve Governance Transparency Naimah AlBaharnah Prof. Liotta, Joseph P AC629, Contemporary Issues In Auditing June 19, 2014 What is the issue being addressed in the paper? Sarbanes Oxley mandates requires all public companies to establish internal controls and procedures for financial reporting. In addition they must document, test and maintain those controls and procedures to ensure…