Auditor Independence Essay -- Auditing

1.Introduction1.1The quarrys of auditUnder the regulatory, directors are take to produce pecuniary statements annually which give a true and faire sketch of the affairs of the company and its profit and loss for the period and accountable to shareholders. Auditors gestate a responsibility to plan and perform the audit to obtain just 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 cod to dissembler or error, thereby enabling the auditor to express an sentiment on whether the financial statements are prepared, in all material respects, in concord 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 200.11)In order to maintain t he auditors rightfulness, objectivity, and freedom, auditing standards have been issued for measuring of the quality of the auditors performance. Auditing standards are familiar guidelines to aid auditors in fulfilling their professional responsibilities in the audit of financial statements. They entangle consideration of professional qualities such as competence and independence, reporting requirements and evidence. (Soltani, 2007) 1.2 law of ethics for auditor independenceAudit independence is a precise critical component if a business wishes to have an audit social 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 increase emphasis on professional skepticism. 4. RecommendationsSince professional independence and skepticism are more important for an auditors on audit engagement. It is recommended that audi tors should upraise professional skepticism to the financial statement audit. It includes increase the ability of auditor to detect fraud by training, enhancing ability through experience and paid more effort in audit plan. In order to raise auditor independence, directors should disclose the audit and non-audit services fee to investors and let investors to appreciate the independence of the auditor. By separating of auditor duties for audit and non-audit services, it can be wait on to maintain auditor independence. By enhancing the internal control system and bodied governance, it can be help to reduce fraud risk.