Dissertation on auditor independence - AUDITOR INDEPENDENCE

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On the other hand, the increasing complexity of the industry has given indications that independent auditing has become necessary for the public limited companies, in particular for the investors who areprimary stakeholders of the enterprise, because they suffer most in uncertain times for e. Consequently, due to misreportings, investors suffer more than the management itself.

Indeed, it is important toknow the impact that audit firms would have due to the regulations of mandatory audit firm rotation. The impact of this might be positive,negative or both.

Furthermore, the impact can be determined through the quality of the auditing. Meanwhile, it is crucial to know how exactly mandatory audit firm rotation would make auditors independent becausethere willalwaysbea conflict of interest between the management and auditors.

Theauditor has to collect fees, rewards, and incentives from the company he is auditing, therefore, how can he report these negatives to the managers who hire them? Why can it be affected by the auditor independence?

How independence influence the quality of audit? The difference between auditor dependency and conflict of interest? Literature Review Auditing and Assurance Accounting firms offer wide range of professional services to the clients.

These servicesinclude audit, review, and assurance. Meanwhile, the auditors are responsible for examiningthe financial reports of the client. Financial reports include the balance sheet, income statement and statement of cash flows as well.

Furthermore, the audit is conducted under the compliance of the international standards and rules and regulations. IFAC, The auditors also have some limitations. Auditor doesn't test the adequacy of the internal control of the dissertation either. The intimidation threat is stressed as the most independence one: Furthermore, it is emphasised that especially in recent times some safeguards have been implemented by the profession, regulation, within the assurance auditors and research proposal theoretical perspective auditing firms to eliminate the above-mentioned threats.

Within the assurance client introduced independent audit committees are widespread. Further, auditing firms have implemented their own more narrowly prescribed ethical standards. Beyond this, it is highlighted that legislation is of paramount importance.

The Companies Act, and above all the ISA were enacted to enhance auditor independence. The third section commences by describing the past of audit regulation.

**Crutically of Auditor Independence in reviewing Financial Statements **

It is explained that in response to the growing public criticism in the s and s the professional accountancy bodies began slowly to introduce auditing standards, ethical codes, disciplinary, licensing and monitoring arrangements. However, in this context it is also argued that auditor have been self-regulated up to now as they create independence new legislation in their bodies. Moreover, stricter rules regarding audit liabilities and regulation to promote essay writing for youth in the dissertation business are assumed.

This essay concludes by stating that the current situation may upset all stakeholders as unbiased auditors are not guaranteed by the self-regulated profession. The fact that audit is a business may contradict it, too.

Nevertheless, it is mentioned that auditors, who act dependently are a auditor minority in reality. Introduction This essay critically analyses the reality of auditor independence in respect of the source of assurance for company financial dissertations and explores the issues surrounding audit regulation.

The essay commences by presenting the importance of auditor independence and outlines the occupation of auditors.