Mataracy
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What is independence?
Independence is an elusive quality which accountant have found rather hard to define in relation tobthr work of a company Auditor.
Basically ,independence is an attitude of mind which does not allow the view points and conclusions of its possessor to become reliant on/or subordinate to the influences and pressures of any conflicting interests. Simpkyvput, auditors independence is essentially an attiyltude of mind characterized by integrity and an objective approach to professional work.
It is purely a state of mind which is not subjected to HOS client's influences and which is devoid of bias abd a continual awareness of those influences and pressures in order to maintain his objectives and impartiality in all aspects of his work.
AUDITOR'S INDEPENDENCE
The value of the auditing services to a very large extent depends on the basis and fundamental belief that auditors are independent.
The degree of confidence held on the auditors opinion, and on the annual financial statements he is setting to, by the shareholders and other users is a fiction of his being independent of his client company and its management.
In fact ,the auditing exercise is virtually useless as an auditor himself if hr is not independent
THE NEED FOR AUDITOR'S INDEPENDENCE.
The need for auditors independence arise out of what may be described as remoteness gap which exists between the various users of financial reports and those that manages the company's resources.
The larger the company, the more the persons concerned are likely to become physically and mentally remote from one another.
The auditor thus acts as bringing point which helps to make management accountable to the shareholders in particular and other users(generally) through its annually reported financial statements.
It therefore follows that for an auditor to be able to stand at a bridging point, he should not see his independence as beneficial to only shareholders but to be equally good for and required by lenders ,bankers,suppliers ,employees etc.
Why independency of an Auditor is important?
Independence is an elusive quality which accountant have found rather hard to define in relation tobthr work of a company Auditor.
Basically ,independence is an attitude of mind which does not allow the view points and conclusions of its possessor to become reliant on/or subordinate to the influences and pressures of any conflicting interests. Simpkyvput, auditors independence is essentially an attiyltude of mind characterized by integrity and an objective approach to professional work.
It is purely a state of mind which is not subjected to HOS client's influences and which is devoid of bias abd a continual awareness of those influences and pressures in order to maintain his objectives and impartiality in all aspects of his work.
AUDITOR'S INDEPENDENCE
The value of the auditing services to a very large extent depends on the basis and fundamental belief that auditors are independent.
The degree of confidence held on the auditors opinion, and on the annual financial statements he is setting to, by the shareholders and other users is a fiction of his being independent of his client company and its management.
In fact ,the auditing exercise is virtually useless as an auditor himself if hr is not independent
THE NEED FOR AUDITOR'S INDEPENDENCE.
The need for auditors independence arise out of what may be described as remoteness gap which exists between the various users of financial reports and those that manages the company's resources.
The larger the company, the more the persons concerned are likely to become physically and mentally remote from one another.
The auditor thus acts as bringing point which helps to make management accountable to the shareholders in particular and other users(generally) through its annually reported financial statements.
It therefore follows that for an auditor to be able to stand at a bridging point, he should not see his independence as beneficial to only shareholders but to be equally good for and required by lenders ,bankers,suppliers ,employees etc.
Why independency of an Auditor is important?
