Contemporary Issues in Accounting and Finance - Essay Example

They consider all this to create an enabling environment that favors their objectives (Jaiswal, 2013). The Standards of the Auditors Ready Ratios (2013) asserts that in the 21st century the European Union came up with an outline of how the auditors should conduct themselves. The outline consisted of the law that stated and guaranteed matters concerning the freedom of the assessors of the law (Kumar & Sharma, 2006, p.134). This was similar to the laws that govern the accountants. It is said that the accountants were given their laws that govern their operations.

They were given by the internal profession of the accountants (Knapp, 2010, p.204). In order to promote the equality in the people and all the other professions the European Union issued a framework that was to govern the legal analyst (auditors) and ensure that they were in line with their operation, expectations and their rights. Even though, this did not concur with some stipulations from the international federation of accountants. This is because the accountants were entitled to some fundamental freedom and rights that ought not to be compromised.

And each accountant had an obligation of independence and doing the right thing. The directives the European Union gave, differed with the directives the international ethics for accountancy (Buijink et al., 1996, p.66). According to Sharma (2012, p.14), the differences were seen and they did expect the law auditors to operate within their stipulations. In giving their outline, the union for accountants had in mind the idea of public interest. They were interested in the good of the people. But in essence the European Union found the laws quite strict for the auditors to withstand (Puttick et al., 2008, p.56).

So it was a two way drive. If the law analyst happens to execute their duties within the provisions of the international accountants, the result will be a stronger system in the operation. This is because there were quite stricter provisions. And if they do there duties in the boundaries of the stipulations of the European Union, they will be bound to some freedom (Basu, 2010, p.134). Discussion According to Greene (2005, p.11), a debate about the freedom of the person when conducting and assessing the legal issues forms the basis of the story.

It is from this that the general theme of the work is, “the obligation of auditing”. This discussion is majorly rotating about this question. The title about the auditor being independent comes out from the following discussion (Morris et al., 2009, p.309). Some of the good principals are now in place and should be in mind of the any auditor or accounting profession. Whenever the auditing is to happen, the outstanding statute is the objective of the auditor. In order to show the public, the people moderating and using the audit opinions in particular, the auditor is supposed to be independent.

Before entering an agreement with the client; the auditor should ensure a peaceful environment and his independence (Volosin, 2008, p.14). According to Gupta (2004, .1247), the European Union argues that, by defining the key audit partner, it does not