Auditor Maintains a Professional Independence Essay

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The value of audit is therefore noted to be derived wholly from its independence. Without the concept of independence, the auditors are noted to lack both credibility and opinion. The nature of relationship that exists between a client and an auditor is by itself a threat to the concept of independence. Incidents of influencing the auditor reports on the financial position of clients have been noted to result due to conflict of interest. The possibilities of a conflict of interest existing between clients and firms are noted to exist. Various connections such as audit firms being associated with other firms, personal as well as family relationships, client's financial interests, employment with the audit firms as well as the provision of various non-audit services to the audit clients are noted to affect the independence of auditors.

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Strength in character is therefore necessary in order to enable the auditors to have independence in their opinions.

Conclusion

It is therefore necessary for auditor independent to be upheld. Internal and external auditors must therefore ensure that they are guided by ethical considerations when providing financial assurance services to various clients. This will then help in ensuring auditor independence.

Mautz, R.K., and H.A. Sharaf. (1961). The Philosophy of Auditing. American AccountingAssociation Monograph No. 6. Sarasota. FL: American Accounting Association

Louwers, T.J., Ramsay, R.J., Sinason, DH, Strawser, J.R., & Thibodeau, J.C. (2011).

Auditing and Assurance Services (4th ed.). New York, NY: McGraw-Hill Irwin.".....

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