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being professional aduitor requier to have the wide independent and honest to express your opinion whenever audti the financial statement to provide the truth of the project acting
so auditor should meet the independence requirementin now adays commercial enviorment cause it is the piority and princeple of auditing process
Yes, no doubt every organisation's first objective is revenue and profits but the auditors responsibilities is to ensure controls and compliance with rules and regulations. No compromise with compliance for revenues/profits.
Being an auditor and as part of a professional body means for an auditor to practice his profession he has to be, and should be independent at all times.
Having said that I do believe that this is still not the case. Regardless of the country, the size of the firm, or ethnicity, auditors all around the globe sometimes, can not, or do not act indipendently. In my openion the lack of competition within the audit market and the Firm's motivation to make as much profit for their partners are the main reasons behind, it has little to do with commerciallisation or the globalisation in today's enviroment. Infact I would contradict and argue against it as in my openion, again, commercialisation or globalisation, if anything, have improved the audit services over the time as auditors are more scrutinised than ever before.
Hope it answers your question :)
In those countries where audit is a statutory requirement and their regulatroy bodies have adopted code of ethics, ISAs and carrying out quality control reviews of CA firms, Auditors have to meet independence requirements otherwise they will get banned or fined by their regulatory body.
But in GCC this is not the case, same CA firm is preparing comapny's accounts and then giving opinion on them. lolz
It depends on the firm, where you are working, in small audit firm, there is no concept of independence, because Partners themself relys on client for there bread and butter, so how can we say that auditors will be independent.In today environment auditors job is to give just prepared final accounts and sign audit report as unqualified and take fees of that work. It is just like a business.
In many countries auditor meet the independence requirements and there are many regulations are in place to monitor the activities of the auditor. Monitoring bodies regularly appraise the performance of accounting firm on the basis of their result they issue rating to audit firms.
In countries where auditor activities are not monitor, there it can be said that auditors doesn’t meet their independence requirements.
No they are not independent.... The Management bodies like SECP or SRB's should assign auditors to companies rather than companies hiring auditors themselves. This would reduce the threat of independence and reliance on client fees.
Nowadays auditors are just rubber stamps who just prepare final accounts for clients atleast in Pakistan. I believe we should have a UK like system where SME with a certain amount of turnover are exempt from audit and directors held responsible to claim such exemption. It also requires SME's to get there accounts prepared from a ACCA or ICAEW member who gives opinion over accounts. So UK has best system for ensuring independence.
It depends on the clients and their fee.even the firm is small or not.only
veer from client to client.in rare cases they are met with the independence requirements where malpractice is not possible
The Commission today is adopting amendments... If investors do not believe that an auditor is independent of a company, they will..... to enhanced pressure on auditors to enable their clients to meet expectations...... But this claim belies the environment in which many tough business ...
الاستقلال للمراجع الخارجي هي بمثابه حمايه للمراجع الخارجي من اجل ابدا الراي الفني المحايد عن مدي عداله القوائم الماليه ..............الخ
ولكن اليوم في سوق العمل نجد ان الاستقلال ليس كما كان اولا او في البلاد الغربيه حيث ان المراجع في بيئه العمل غير محايد حيث ينظر الي الشركه علي انها العميل الخاص به ومن ثم فلابد ان يرضيه بكل الوسائل الممكنه وذلك من اجل عدم خسارته
Independence of Auditors in todays world depends on the level of clients in terms how big is the company,turnover and its assets.If the company is a listed company than independence issues hardly exist,as publi funds are invested in it and their are many stakeholders invoved in it.As far as small companies are considered then you will find many independene issues,and auditors have to for go it as instructions are from the top.
I agree with some of the participants here that indepedence is directly related how big or small Firm is.But at the end of the day auditors view point should be un-biased rather than showing biasness to ensure client remain us with for a long time.
