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Importance of Auditing essay
← Accounting FraudAccounting Principles →

Importance of Auditing. Custom Importance of Auditing Essay Writing Service || Importance of Auditing Essay samples, help


An auditor can be defined as a person who has been authorized and appointed to examine records of account and compare the results from different balance sheets that have been provided. An auditor has the independence to record what he feels like as far as accounting is concerned. Auditor independence is the freedom that an auditor has to choose from the parties that have interests in financial statements of a given entity. It is usually an attitude that is characterized by the mind of the auditor and his integrity to get an approach that has the objectives of the audit process because the auditor is required to do his work freely in this objective manner (Basu, 2008).  

One of the purposes of an audit is to make sure that the financial statements are credible by providing assurance that is written and is reasonable from a source that is independent, true and with fair view according to the accounting standard. One of the companies that were audited by an outside source is Uvorcop and it was audited using the freedom of an auditor(Sharma, 2005). An objective like this can only be met if the people using the audit report are convinced that the auditor might have been influenced by parties like the directors in the company or other interests that are bringing conflicts like when the auditor happens to own shares in the same company that is being audited and has issues with the company (Nicoll, 2005).             


Finally, contracting services that are against fraud and provide security to companies is a very important and wise investment for any company to take since it ensures that a company implements ethical business behavior. This is also very important in a company since it ensures that the performance of the company is improved on a daily basis. Understanding the importance of the independence of the auditor is also very essential in any organization.

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Related essays

  1. Accounting Principles
  2. Accounting Systems
  3. Accounting Fraud
  4. Accounting Standards and Financial Intermediaries

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