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Audit Framework

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This is where auditing comes in as an important factor to ensure growth. Tis is because auditing helps the company to have a very objective and fair overview of its statements, rcords, oerations and performances, bsed on which it will know whether it is growing or falling (Collins, 2006). I effect, efective and quality auditing plays a part in the growth of the company and thus goes a long way to ensure that the needs of stakeholders are met. Hving said this, i is important to speculate on when the outcome of audit reporting based on which growth decisions are made is not credible or accurate.

Crtainly, a inaccurate audit reporting will mean that decisions to be made about the company cannot be regarded as right or tailored towards the real state of the company (Eichenwald, 2005). I is against this backdrop that auditor independence can be linked to the achievement of the needs of stakeholder groups in the organisation and in UK as a whole. Tis is because Sharpe (2004) found auditor independence to be a in ensuring accuracy with audit reports.

I the UK, sakeholders concerned with ensuring that statutory audit is a high quality product can be grouped into internal stakeholders and external stakeholders. I the same way, aditor independence comes in two forms which are independence of the internal auditor and independence of the external auditor. Idependence of the internal auditor is enforced when the internal auditor is given independence from parties or people whose interest may be harmed by the outcome of the audit report (Bradshaw & Franc, 2010). Lkewise, of external auditor is said to be enforced when the external auditor is kept independent from parities or people who may have an interest in the published statements of the company (Rubinstein, 2006).

Gaham and Harvey (2011) however debated that for the needs of stakeholders, wether they are internal or external stakeholders to be achieved, i is important that independence of the internal auditor and independence of the external auditor will both be promoted in the same way. Tis is because internal audit reports have direct influence on decision making, also has a direct influence on what external stakeholders, prticularly shareholders get from the company (Roll, 2012).

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