audit 1 - E nhancing the efficiency of a business is the...

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Enhancing the efficiency of a business is the first and foremost principal for each and every company. This is a crucial aspect for auditors as this does not only ensure their place within the market but it preserves their relationship and growth with their clients too. When companies are seeking to improve their business and ensure the shareholders and other parties (e.g., public, government for taxation purposes) are getting the most out of their firm and investments, auditors are approached. This is mainly done to add credibility to a business by assuring their financial statements are truly and fairly presented and that the company is being managed as effectively as possible. The Leicestershire County Council have described that it is basically to give an it is to provide an objective opinion on whether the things are being done right by people (An Introduction to Internal Audit, 2008) External auditors mainly look at the financial statements whereas internal auditors go more in depth by measuring broader aspects and offering sound opinions to ensure survival of the business. This is when assurance services are offered to satisfy the needs of clients by giving independent and qualified views, opinions and judgements. The issue of ‘independence’ is very important and comes into force when providing assurance services, these are services that are offered to improve and enhance the information that is relevant mainly to the managerial departments of a business, as stated in the AICPA
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Assurance Services are independent professional services that improve information quality or its  context’ (Assurance Services, 2009).  When performing assurance services it is important that the auditor is independent in mind and appearance. Being independent in mind so that they are able to comfortably and confidently express their views, and are able to assess the company and its situation and then offer their opinions on what they think is necessary for the business to follow and implement. They must be able to stand up to their arguments and not worry about what others will think of their recommendations. Their views should be objective, factual and thoroughly unbiased. It should be based on their personal beliefs and viewpoints of what they have discovered throughout the audit. It should not involve the views and opinions of the managers or directors who work closely with auditors. It is as much important that auditors are independent in appearance too, in the sense of offering positive and beneficial recommendations and so their attitude, personality and
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This note was uploaded on 10/24/2010 for the course ACCOUNTING INFS2005 taught by Professor Steven during the Three '10 term at Australian National University.

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audit 1 - E nhancing the efficiency of a business is the...

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