Independence of External Auditor

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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 of a financial enhancements by providing reasonable assurance from an independent source that present a true and fair view in accordance with an accounting standard. This objective will not be met if users of the audit report believe that…show more content…
There are three main ways in which the auditor’s independence can manifest itself. Programming independence is essentially protects the auditor’s ability to select the most appropriate strategy to conduct an audit. Auditors must be free to approach a piece of work in whatever manner they consider best. As a client company grows and conducts new activities, the auditor’s approach will likely have to adapt the account for these. In addition, the auditing profession is a dynamic one, with new techniques which is constantly being developed and upgraded which the auditor may decide to use. The strategy methods which the auditors intend to implement cannot be inhibited in any way. While programming independence protects auditors’ ability to select an appropriate strategy, investigative independence protects the auditor’s ability to implement the strategy in whatever manner they consider it necessary. Basically, auditors must have unlimited access to all company information. Any queries regarding a company business and accounting treatment must be answered by the company. The collection of audit evidence is an essential process, and cannot be restricted in any way by Client Company. Reporting independence protects the auditors’ ability to choose to reveal to the public any information that they believe should be disclosed. If company directors have been
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