Auditor Independence Essay -- Auditing

1.Introduction1.1The objectives of auditUnder the regulatory, directors are required to produce financial statements annually which give a true and faire view of the affairs of the comp all and its profit and loss for the period and accountable to shareholders. Auditors have a responsibility to externalize and perform the audit to obtain apt assurance to the shareholders and other stakeholders of a company on the financial statements.The objective of an audit of financial statements is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial underwriteing framework and to report on the financial statements, and communicate as required by the HKSAs, in accordance with the auditors findings. (HKSA 200.11)In decree to maint ain the auditors integrity, objectivity, and independence, auditing standards have been issued for measuring of the quality of the auditors performance. Auditing standards are general guidelines to aid auditors in fulfilling their professional responsibilities in the audit of financial statements. They include experimental condition of professional qualities such as competence and independence, reporting requirements and evidence. (Soltani, 2007) 1.2Code of ethics for auditor independenceAudit independence is a very critical office if a business wishes to have an audit function that can add value to the organization. The audit report and opinion must be free of any bias or influence if the integrity of the audit process is to be valued and... ...to aid auditors in fraud detection and append emphasis on professional skepticism. 4. RecommendationsSince professional independence and skepticism are more important for an auditors on audit engagement. It is recommended that auditors should enhance professional skepticism to the financial statement audit. It includes increase the ability of auditor to detect fraud by training, enhancing ability through experience and paying more effort in audit plan. In order to enhance auditor independence, directors should disclose the audit and non-audit services fee to investors and let investors to evaluate the independence of the auditor. By separating of auditor duties for audit and non-audit services, it can be abet to maintain auditor independence. By enhancing the internal control system and corporate governance, it can be help to reduce fraud risk.