Accountant Independence

What is accounting independence? I judged that the independence of the accountant is very similar to the independent auditor. Regarding the independence of the auditor, it means independence from the party that may have economic interests in the business that the internal auditor or external auditor has audited. The original concept of audit independence was developed in the 19th century and began mainly in the UK. At that time, investors in the UK did not allow them to engage in businesses audited by the auditors.

This briefing explains the history of independent certified public accountants' standard reports and recent attempts to change them. This document states that the current standard report of independent certified public accountants has changed little since 1948. This edition of this report was criticized for difficult understanding and defense. The main reason why the public accounting industry did not attempt to revise the report twice is that reports that better describe the audit process are viewed as attempts to weaken occupational obligations.

Listed companies and certified public accountants are responsible for ensuring independent audits. Independence is the cornerstone of public accounting professionals, public accountants must always be independent. Management and the Audit Committee perform the duties by specifically asking public accountants for factors affecting their independence and asking them to confirm that he is actually independent of the company need to do it. In this regard, management and the audit committee may wish to consider the economic significance of the customer for the public accounting company and the entire participating office.

The generally accepted auditing standards require independent certified public accountants to conduct a preliminary review of the internal accounting management system. The purpose of this review is to allow independent certified public accountants to fully understand the system and to determine how much they depend on the nature, scope and timing of audit testing. After the initial review, the extent to which independent certified public accountants participate in the internal accounting management system varies greatly. After completing the preliminary review, independent certified public accountants can decide not to rely on the company's internal accounting management.