External Auditors Must be Independent

The presence of an external auditor allows creditors, investors or bankers to use fully trusted financial statements. Although this does not guarantee the accuracy of the financial statements, it provides the user with assurance that the company's financial statements can truly fairly reflect its financial condition and business operations. It also provides reliability and is an important asset in business. Thanks to its reliability, investors, bankers and others have increased motivation to establish business projects with companies.

External auditors are often referred to as independent auditors or certified public accountants (CPAs). Because these auditors are not hired by audited companies, they are called "outside the company." However, the external auditor audits public transactions and financial statements of private enterprises, partnerships, local governments, individuals and other types of entities. The external auditor can be a single owner or a member of a certified public accountant office (Robertson et al., 2002). Meanwhile, Boynton et al. (2001), since external auditors describe independent education and training, based on their experience, external auditors conduct each type of activity, business audit activities, audit compliance and financial statement audit activities I am qualified.

There are various types of auditors, but they can be divided into four headings: external auditors, internal auditors, government auditors, and forensic auditors. The important requirement for each type of auditor is that it is independent for some reason from the audited entity (Robertson et al., 2002). 5.1 External Auditors External auditors are often referred to as independent auditors or certified public accountants (CPAs). Because these auditors are not hired by audited companies, they are called "outside the company." However, the external auditor audits public transactions and financial statements of private enterprises, partnerships, local governments, individuals and other types of entities. The external auditor can be a single owner or a member of a certified public accountant office (Robertson et al., 2002). Meanwhile, Boynton et al.

Under the responsibility of the auditor, the auditor is required to consistently perform the duties of internal or external auditors. The external auditor is an independent third party user of the financial statements. They check the report and find mistakes from company records. The internal auditor is usually a company employee responsible for auditing his company's report. The internal auditor's responsibility is very similar to that of the external auditor, but the internal auditor is responsible for checking all the reports in their company. As an expert, the auditor plays an important role in society. The auditor must continue to cooperate in order to improve the results of the accounting report. They must also maintain public trust and autonomy so that they can collectively maintain and improve their professions.