Independence Between Auditor and Client: Essay

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Any threats to independence of the client can be determined on whether threats are created by past services from the client or business relationships before the audit engagement.

Importance of Independence of Auditor and Client:

During financial statement engagements, the independence of auditors and clients is important because of the following reasons …

Lesser Inappropriateness:

The closer the relationship between an auditor and his/her client is the higher the probability and perception of inappropriateness. Through an examination of various studies and the wider implications of such relationship, the independence between auditor and client is the most effective way of lessening inappropriateness. This is primarily because such independence promotes and sustains integrity during the financial statement audit engagements.

Promotion of Reliability:

The main goal of independence between auditor and client during audit engagements is to promote reliability through providing an independent and objective view of the financial statements. The independence of the auditor assists in ensuring quality audits and contributes to reliability of the client's or user's financial statements on the financial reporting process. Reliability of the audit process is promoted because auditors have the ability to render unbiased audit decisions while clients evaluate the statements freely.

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The result of such initiatives is promotion of user reliance on the audit process and enhancing the efficiency of the capital market (Lindberg & Beck, 2002). The financial position of an audit client is largely determined by an efficient and reliable audited financial statement.

Confidence of the Audit Client:

As independence between the two auditing parties lessens inappropriateness of the auditor and promotes users reliability, it also contributes to confidence of the audit client. This confidence is attained through measures to maintain objectivity and integrity by the auditor and the client's independent and objective evaluate.

Conclusion:

The independence between the auditor and client has become an important aspect of the accounting and auditing profession. This concept has largely been fueled by recent events in several corporations in which the reliability of financial statements have been compromised. it's important for the auditing process to incorporate independence of both parties because of its impact on the quality of financial statements......

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"Independence Between Auditor And Client ", 18 May 2012, Accessed.13 May. 2025,
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