Audit Assignment (Abdul Rauf)

Audit Assignment (Abdul Rauf) - Abdul Rauf 07419243 Audit...

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Abdul Rauf 07419243 Audit and Assurance Assignment Introduction Auditors are always keen to provide their clients with many different services in order to stay ahead in the competition. This competition has led to the trend of auditing firms providing variety of services, which are not part of external audits. Audits like any profession follow rules and principles. These rules are emphasised in the APB and IFAC. These boards give structure and fundamentals, which help auditors, prepare for their audits. There is a need of independence amongst auditors. This need is further explained below. We need to examine that whether these needs are deteriorating through all the innovations and developments taking place in auditing profession and if there is a need for a better more improved standards. Auditors Independence and Its Importance Independence in terms of auditors means auditor is free of any ties that might be created between auditor and its client, which, would result in auditor judgment being affected. The example that comes in mind here is of auditor receiving extra numeration fees. If auditors receive extra fees for their audits, there is a likelihood chance of their judgement being impaired. Auditor work include them reviewing financial work of the companies and give their true and fair opinion on the financial records. Auditor’s opinion is influenced by the set of procedures put in place by APB. Auditors who tend to influence the audit are the professional lawyers, tax advisors, audit staff and senior auditors. All of them need to have certain characteristics in order for them to be independent. First, one is integrity. Integrity means honesty. Honesty is important in every profession. In audit, integrity also includes fairness and confidentiality. Objectivity is also important as it allows auditors to make decisions without any biases. The main reasons as to why it is important for auditors to be dependent arise from the external users of the accounts. Accounts contain many things which cannot be understood by non-accountants and contain many things which are not factual based. Auditors therefore, need to be able to use their fair judgement in order to make valid recommendation. If auditors are not independent, they may not give fair view on the client accounts. For the external users they rely too much on the work produced by audit because that is the only way for companies financial report coming into scrutiny. Share holders, one of the external users could face heavy losses due to auditors not doing their job properly. Provision of Other Services
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Audit Assignment (Abdul Rauf) - Abdul Rauf 07419243 Audit...

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