Essay about External Auditors Must be Independent

A independent review from an auditor of the companies accounts will have many benefits to the owner for example for example he/she will be satisfied of the workings of that particular department. This will mean that the owner will have confidence of where they should place their funds or research and development if they know for sure that there department’s financial record are in order. This will then allow for the best method to allocate resources allowing for greater efficiency and overall the…

Improvements in reliability of corporate revelation minimize the threat that an investor or a creditor will make poor decision if the information which is provided to them is inaccurate. The threat that is mentioned above is the information risk, that is present everytime creditors or investors use information to assess economic risk of any potential investments. The better the quality of the information, the better chances these users making the right decisions. It means the information risk is…

OBJECTIVES OF THE STUDY The objective of the research is to establish whether the auditor has a role to play in ensuring good corporate governance. If an auditor has, what possible stumbling blocks will interfere with his role of ensuring good corporate governance .The research will increasingly look at the issues of fraud and white-collar crimes in corporate governance of a company? That is, what responsibilities do an auditor has in detecting fraud and white-collar crimes. The research will focus on much…

KPMG is one of the largest companies in the world. It is also one of the “Big Four Auditors.” The Big Four Auditors are the largest four international companies that offer services in auditing, tax, consultation and anything to do with legal services. KPMG was founded in 1987 and its headquarters is in Amstelveen, Netherlands. They focus on three lines of services: Auditing, Tax, and Consultation. Collectively, they employ more than 155,000 people across the world. They branch out in about 155 countries…

the corporation and the auditor. Therefore the lack of auditor independence may impact adversely on an audit in many different ways. Other than the two examples previously mentioned above, there have been many other corporations that experienced adverse reactions due to bad accounting practices and the lack of auditor independence. The independence of external auditors had been brought into question because of the potential influence the corporations had on its auditors. It used to be the duty…

is followed just to aid public reliance in their accounting. There are a set of regulations which have been set by the AICPA (he American Institute of Certified Public Accountants) for the issue in public’s accounts. The IIA (Institute of Internal Auditors) and IMA (Institute of Management Accounts) as well have presented their specific code of ethics to pound the set of ethics in accounting as a field. It is the duty of every professional accounting organization to direst all the members of the organization…

Furthermore, if no employer-employee relationship exists (regardless of what the relationship is called), you are an independent contractor and Karen’s earnings are generally subject to Medicare and Social Security Taxes for Self-Employed (IRS, 2011). In any event, this is a very interesting question for all involved. Despite the fact that Karen was hired as a consultant acting independently of the utility, she has been working within a relationship with the employer for a long period of time.…

catch up on his speech, and equally important, his ability to read. Due to the fact that he did not have a relationship with words for the first two years of his life, “independent literacy” became a task that would haunt him for the rest of his school days. I have used the phrases, “independently literate” and “independent literacy” to illustrate my main point. What I have…

permitted to participate in health insurance. He states if private payers and providers lower costs to make up for public payers, the reimbursement will be much less than the hospitals' costs. Mr. Lease indicates that quality in health care is another external influence in the delivery of health care services. The integration of medical services into larger payment groups, when using value-based purchasing and improving coordination of care would increase productivity in health care; making medical services…

ethical and can come visible lack of decorum that undermines the confidence in the internal auditor, the audit activity, and the audit profession. (Institute of Internal Auditors) A conflict of interest can impair an individual's ability to do his or her duties and responsibilities objectively. (Institute of Internal Auditors) Moral Seduction Theory (MST) discussed by Andrés Guiral suggests that “auditors are morally compromised by the perceived consequences of their opinions and the root of auditing…