文档介绍：本科毕业论文(设计)
外文翻译
外文题目 The Realities of Auditor’s Independence and Objectivity
外文出处 Journal of Accounting–Business & Management
外文作者 M. Krishna Moorthy
原文:
The Realities of Auditor’s Independence and Objectivity
Ahson Umar (2004) states that auditing, like other professions, requires its members to make impartial and objective judgements. There are standards and rules governing the work of auditors that emphasize two fundamental issues: First, the need for auditors to avoid any additional economic ties with the client, and, second, the need to be absolutely objective in their approach to the audit and the client. However,there has been consistent criticism about the quality of audits, especially after the Saving and Loans Associations failure of the 1980s. Critics have documented numerous instances where auditors fell short of fulfilling their obligations to the society for example, auditors were criticised for not warning shareholders and potential investors about the going concern problems panies that subsequently failed. The author displays two schools of thoughts in his article one of which is that in an actual audit situation, the auditor must maintain a close relationship with his/her client in order to understand the operations and obtain appropriate information essential to the formation of his/her opinion. On the other hand, it is psychologically impossible for auditors to be independent and objective because, even an auditor possessing a high level of integrity, cannot ignore pressure enforced by management owing to their power to hire and fire auditors at will. They not only have to rely on the management for evidence but also for future streams of revenues that can only be ensured if they continue to serve in their capacity as auditors. The author notes that, in situations when the management is truthful and honest, the relationship between the management and the auditor is of collaboration and the auditor plete the assignment to his/plete sat