Importance of External Auditors

The purpose of this paper is to study the function of the external auditor to analyze the importance of independence. The main task of the external auditor is to review and evaluate all financial records of the company or company. They provide an objective opinion on the effectiveness of the organization's financial statements and accounting policies to help management decide. In the event that the independence of the external auditor is compromised, just as Arthur Andersen, once a huge accounting firm was broken down by Enron's bankruptcy, the public suspected the quality of professional audit services, the results It will be very serious.

The external auditor must be independent in order to act on behalf of the employer (usually a shareholder) and to report the financial statements prepared by management for the benefit of shareholders. If the external auditor is not independent from their shareholders, for example, if they hold shares in the company conducting the audit, their ability to form objective opinions on the financial statements will be compromised. In addition, external auditors also need to be considered independent. Otherwise, the employer will not be confident of the audit report issued by the audit. This is why the independence of the auditor is very important to prevent further scandals such as Enron and Palmarat.

No one doubts the importance of the independence of external auditors in business, financial, or economic friendly relationships. The publication of independent expert opinion on the fairness of financial statements is the most important and valuable service provided by public accounting experts. However, although the independence of the auditor is important, it is important to ensure that the audit is carried out for the audit by the quality of work related to the work of external auditors, intensive training, strict supervision of audit procedures and practices, Respect is necessary for the statement. This phenomenon seems to have escaped the observer. In the materials covered in this article there is no substantial problem in the abilities of the auditor, but if there is any doubt about the auditor's abilities, regardless of the degree of independence of the auditor, the audited statement I will be respected as it is today.