Facebook Pixel Code
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Audit Framework Essay Example

Show related essays

Audit Framework

This is a preview of the 10-page document
Read full text

This is where auditing comes in as an important factor to ensure growth. This is because auditing helps the company to have a very objective and fair overview of its statements, records, operations and performances, based on which it will know whether it is growing or falling (Collins, 2006). In effect, effective 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. Having said this, it is important to speculate on what happens when the outcome of audit reporting based on which growth decisions are made is not credible or accurate. Certainly, an 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). It 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. This is because Sharpe (2004) found auditor independence to be a major factor in ensuring accuracy with audit reports.In the UK, stakeholders concerned with ensuring that statutory audit is a high quality product can be grouped into internal stakeholders and external stakeholders. In the same way, auditor independence comes in two forms which are independence of the internal auditor and independence of the external auditor. Independence 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). Likewise, independence of the 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). Graham and Harvey (2011) however debated that for the needs of stakeholders, whether they are internal or external stakeholders to be achieved, it is important that independence of the internal auditor and independence of the external auditor will both be promoted in the same way. This is because internal audit reports have direct influence on management decision making, which also has a direct influence on what external stakeholders, particularly shareholders get from the company (Roll, 2012). In a like manner, external

This is a preview of the 10-page document
Open full text
Close ✕
Tracy Smith Editor&Proofreader
Expert in: Finance & Accounting, E-Commerce, Management
Hire an Editor
Matt Hamilton Writer
Expert in: Finance & Accounting, Business, Marketing
Hire a Writer
preview essay on Audit Framework
WE CAN HELP TO FIND AN ESSAYDidn't find an essay?

Please type your essay title, choose your document type, enter your email and we send you essay samples

Contact Us