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... INDEPENDENCE Audit is the process of evaluating a set of financial ments, processes, systems to comment on the vera and authenti of the same, that the books of accounts represent a true and fair view of state of affairs an enterprise. Investors, regulators, creditors and other third parties place credence on audited statements. It can be clearly seen that if audit is to be carried out in free and objective manner the auditors must be independent in fact (actual independence) and if their opinions are to be accepted auditors must also appear to be independent.
Corporate world has time and again been rocked by scandals and sudden failures, of these, Enron & World Tel are considered water shed cases du...