Auditor Independence Essay -- Auditing

1.Introduction1.1The clinicals of auditUnder the regulatory, directors are necessary to produce fiscal statements annually which give a true and faire charm of the affairs of the company and its profit and loss for the period and accountable to shareholders. Auditors support a responsibility to plan and perform the audit to obtain commonsensible 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 out-of-pocket to dodge or error, thereby enabling the tender to express an vista on whether the financial statements are prepared, in all material respects, in accordance of rights with an applicable financial reporting framework and to report on the financial statements, and communicate as required by the HKSAs, in accordance with the auditors findings. (HKSA 200.1 1)In order to maintain the auditors ace, objectivity, and license, auditing standards have been issued for measuring of the quality of the auditors performance. Auditing standards are popular guidelines to aid auditors in fulfilling their professional responsibilities in the audit of financial statements. They allow consideration of professional qualities such as competence and independence, reporting requirements and evidence. (Soltani, 2007) 1.2 decree of ethics for auditor independenceAudit independence is a rattling critical component if a business wishes to have an audit rifle that can add value to the organization. The audit report and opinion essential 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 increase 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 provoke 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 kick upstairs auditor independence, directors should disclose the audit and non-audit services fee to investors and let investors to survey the independence of the auditor. By separating of auditor duties for audit and non-audit services, it can be garter to maintain auditor independence. By enhancing the internal control system and integrated governance, it can be help to reduce fraud risk.