Auditor Independence

Introduction 1 Purpose of audit According to regulatory requirements, directors must prepare annual financial statements to truly fairly reflect the business of the company and its current profits and losses and be accountable to shareholders. not. It is the responsibility of the auditor to plan and implement an audit from the company's shareholders and other stakeholders to obtain reasonable assurance in the financial statements. The purpose of the audited financial statements is to reasonably assure that there is no material misstatement in the entire financial statement, even though it is due to fraud or error, whereby the auditor shall I can.

In the literature, two criteria for evaluating the independence of the audit are being considered. Mautz & sharaf (1961) is one of the pioneers of the auditor's independence research and has two aspects, independence (practically independent) and occupational independence (independence from the outside) of practitioners We propose an independent concept to include. Public supervision committee emphasizes that members of the Certified Public Accountant Office should protect their occupations through "de facto" independence and "external" independence (Lowe et al., 1999) . In fact, independence refers to the psychological attitude of the auditor and is characterized by the integrity and objective methods of the audit process. In addition, the independence of practitioners requires the auditor not to be affected by personal interest and excessive pressure (Moizer & Sutton, 1997)

It is independence that plays the greatest role in judging the independence of the auditor. The auditor may or may not be independent, but if the auditor is truly independent, the auditor can remain objective and fair. Professionals should consider making the "Professional Code of Conduct" tight to address the problems of audit team members who know who should act as friends in any position within the audit client. Even in this case, the company can confirm the customer, but the audit members who are closely audited can not enter the audit team.

"Independent auditor is one of the most important issues in today's accounting practices.Idependability improves the effectiveness of audit by auditor objectively planning and implementing audits (Myring and Rloom, 2003, p. 31). Since its role is to confirm the credibility of the descriptions created by the administrator and to identify the evidence behind the data, it is important for the auditor's value that the auditor's Is independent, it is affected by various threats

The independence of directors and auditors is one of the cornerstones of a sound corporate governance system. If companies do not change customs, legislators will intervene, as the EU does with regard to auditor independence. If you want to avoid further accounting scandal headlines, it may be time to review the current auditor's liability system. Deminor Recovery Services (DRS) has a registered office in 1 rue Jean-Pierre Brasseur, L-1258 Luxembourg and a Deminor Recovery Services (Luxembourg) SàRL with its capital of 2,542,104 euro and its Belgian corporate group is. Representative offices of subsidiaries, France, Amsterdam, Milan, New York. Our service may vary from country to country depending on the local regulations stipulated in our service agreement. Please contact us to discuss our service in your country