Important for external auditors to be independent essay
Abstract. Based on a study by the Internal Audit Department of the Swedish Police, this text provides insight into the daily work of a group of internal auditors and shows how they deal with the ideal of independence in an organization of which they are part. The text is built on a narrative framework and structures the definition of external audit. External audit is an independent examination of the financial records maintained by the company, conducted by a third party appointed by the shareholders. Discussions about audit quality usually take place in the context of alleged audit failures, without recognizing that the vast majority of audits endure. the test of time. In answering the question 'how and why an independent audit matters' we considered the explicit value of the final audit report and the importance of the consultative audit. This article provides an overview of the recent European and international literature on the independence and objectivity of internal audits. We focus on investigations involving internal auditors. Subianto 2019, which states that auditor independence has no influence on the quality of the audit. The significance level based on the partial test in proving auditor ethics affects audit quality, 818. This article presents a comprehensive review of academic research related to auditor independence and audit quality. This literature review is conducted based on published articles in the - nine leading journals in the field of auditing. We organize our review around four key threats to auditor independence, namely: In addition, external auditors must also be seen as independent, because if they are not, the company's owners will not have confidence in the audit reports that the audits issue . That is why it is so important that auditor independence is so important, because to prevent further scandals such as those in the case of Enron and Parmalat, etc. The concept and notion of auditor independence is crucial for the accounting profession and for the more than a hundred stakeholders who depend on the work of accountants. Definition of external audit. External audit is an independent examination of the financial records kept by the company, carried out by a third person appointed by the shareholders of the company at the general meeting, who provides an opinion as to whether the financial statements as a whole providing a true and fair view of the External auditors is the key to this objectivity. They act as a much-needed 'fresh set of eyes' for financial statements and accounts and provide their opinions and recommendations without bias. Without an effective external audit, it would be up to the company's risk management and internal audit functions to pick up Abstract's slack. The concept and notion of auditor independence has been critical to the accounting profession and the variety of stakeholders who rely on the work of auditors for more than one hundred and fifty years. This contribution attempts to highlight some of the issues underlying the concept, together with a brief discussion.