We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Auditors independence - Essay Example

Comments (0)
Auditing is an incredibly important matter in the world today, and if you want to learn about a matter such as this, then there are several embedded matters that you will need to inform yourself on first; such as the fact that an auditor's objective is basically defined as that of "to provide a high level of assurance through the issue of a positive expression of opinion that enhances the credibility of an assertion about an accountability matter" (Gay & Simnett, 2003, p.745)…
Download full paper

Extract of sample
Auditors independence

Download file to see previous pages... Auditor independence is a term which truly umbrellas many different matters, and which thus must be understood fully and thoroughly in order to be understood properly altogether. Basically, in order to understand the meaning of auditor independence you must first understand the fact that basically the professional independence of auditors has truly been held responsible for that of the many corporate collapses and financial debacles that have taken place worldwide, and that this explains the essentiality of understanding the importance of the independence factor in the auditing sector. Independence is generally understood to refer to a mental state of objectivity and lack of bias. They are totally opposed against the new ruling and voiced many of the same concerns that were seen from other CPA's. He expressed concern that the regulation of the new rule cannot be sufficient by itself. It's also necessary that public investors-the users of financial reports-perceive that the numbers are right. These are basically and for some places entirely restricted because they give the appearance that when auditors provide these services to audit clients they are acting as an advocate for the audit client. Brown goes on then to even further illustrate this point by showing that in Canada we are looking at the SEC's proposal closely and extensively and "will formulate our regulatory response partly on your experience. It is truly and absolutely a key factor that the audit committee identifies independence violations, because they are on the front line and are closest to the action. The creation of these principles was due to increasing concern that auditors were not remaining totally independent when performing the audit. Other times the consulting professionals will have little or no interaction with auditors especially in large firms. If firms miss their earnings expectations even by a slim margin the result is an immediate decrease in stock prices. Furthermore, the last non-audit service that is restricted to audit clients is expert services.
The initial concept of auditor independence, which arose during the 19th century, was based on the premise, primarily British in origin, that a principal duty of professional accountants and auditors was the oversight of absentee investments in the existing and former colonies of the British Empire. During this period, a relatively small number of accounting firms could perform audits for a relatively large number of entities. Professional accountants and auditors could render reports on the financial performance of different entities and could work for different investor groups.
The concept of auditor independence during this era did not conceive of auditors as advocates for audited entities; British investors explicitly forbade auditors from investing or working in the businesses that they audited. At the same time, as long as auditors maintained their primary loyalty to the investors back home, the scope of professional a ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Provision of Non Audit Services by the Auditor to the Audit Client Is a Threat to Auditors' Independence
Literature Review 4 2.1 Non Audit Services of Auditors 4 2.2 Threat to Auditor’s Independence 5 2.3 Comparison between Non Audit Services and Other Threats to Auditor’s Independence 6 2.4 Effective Means of Strengthening Auditor Independence 8 3.Data Collection 9 4.Findings 9 5.Conclusion 10 References 11 1.
6 Pages(1500 words)Essay
Envalue the Auditor Independence Provisions
The FEE Paper Comparison International Ethics Standards Board for Accountants (IESBA) Code of Ethics that says “An individual’s objectivity must be beyond question when conducting and reporting on a statutory Audit.” This is applicable when auditors themselves act as statutory auditor, or when they are auditing on behalf of an auditing firm.
5 Pages(1250 words)Essay
Rotation of Auditors Improving Quality of Audits
The rotation of auditors is one of the criteria that propose towards the quality of audit in most of the cases.The integrity of the financial statements is contingent upon the audit. Audit of the financial statements elaborates the dependability of the users of the financial statements upon the reliability of the information provided in the financial statement.
6 Pages(1500 words)Essay
Does the rotation of auditors improve the quality of auditing
It has also challenged numerous businesses, in the event of economic crisis by translating into high systemic risks and financial instabilities. Over the past, numerous corporations collapsed because they worked on wrong assumptions that failed to fully reflect the condition of their finances.
8 Pages(2000 words)Essay
Role Of Safeguards In Strengthening Independence
The policies should be such formed so as to affirm the independence of the auditors with the client and that the auditors are not influenced by the client. The policies followed should denote the independence of auditors regarding audit procedures and opinion and the client shall not be able to influence the opinion of the auditor.
4 Pages(1000 words)Essay
Auditors' liability
(Cousins et al, 1998) Contrary to the early reasons for having this law, state guaranteed market of external audits hasn't been able to provide a secure employment and niches for accountants. The failures and negligence of external auditing make it to the news headlines regularly.
6 Pages(1500 words)Essay
Auditing and Accouning Ethics
From this definition the basic understanding of the purpose of audit is that auditors verify the financial information companies prepare and provide reasonable assurance to the shareholders and other stakeholders that this financial information is free from material
11 Pages(2750 words)Essay
Generally Accepted Auditing Standards (GAAS)
Quality of accounting standards forms the basis for the well functioning of a market system that features the institutional capitalism such as that of United States. This perforce requires that not only financial
4 Pages(1000 words)Essay
Dentify the basic provisions of the Sarbanes-Oxley Act that specifically deal with ethics and Independence and research how this Act has affected auditors since it was established in 2002
ed to ensure that corporate management adhere to professional ethics as well as compel audit firms to be independent to reflect the true financial status of corporates. Prior to 2002, Investors had witnessed the collapse of giant firms as a result of the discovery of corporate
3 Pages(750 words)Essay
Let us find you another Essay on topic Auditors independence for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us