DOES AUDIT REGULATION ENSURE AUDITOR INDEPENDANCE - Essay Example

The objective of the present research is to define the UK auditor’s independence in the regulation of audit, the scope of competences and responsibilities of various professionals, and to evaluate who and what can be the best practice in auditor independence. The writer will define and analyse the concept of auditor independence in the audit regulation and will investigate effectiveness of audit regulation in the current state of UK auditors’ independence. Specialized accounting corporations and various government authoritarian organizations throughout the globe have accentuated that auditor autonomy is both an ethical and a professional matter, essential to auditors.

Independence has been examined as “an intensely felt professional philosophy”. It is supposed that part of the solution in deciphering ethical impasses regarding potential and identified risks to assessor independence is to put more stress on professional beliefs (Mednick, 1990). The Ethics Committee of the International Federation of Accountants has also highlighted the notion of independence as an ethical subject in its principles on assessor independence covenanting with veracity, neutrality, and secrecy.

Many writers have turn up with behavioural, theoretical, sociological and officially authorized definitions of independence and what makes up a mutilation to auditor’s independence. Elijah Watts Sells (1908) emphasized the significance of the auditor’s independence in relation to the auditor: The place of the public accountant in regard to corporations and their management is at all times an independent one. Unlike the legal representatives, he is not projected to make out a case. The nature of the service he provides is impersonal (Sells, 1908).

Near the beginning of 1928, a perspective in the Paper of Accountancy emphasized the subsistence of a clash of interest when an auditor is a stockowner, executive,