Role Of Safeguards In Strengthening Independence Essay

Role Of Safeguards In Strengthening Independence - Essay ExampleThe importance of autonomy of auditors and the inherent risk of not beingness totally self-determining raises many of the issues where safeguards were suggested in order to minimize the threat to the sovereignty of the auditors. Although auditors cannot be completely turn from the client, however, there are certain measures, which brings the dependency of the auditors to an acceptable level. Independence of the auditors is compulsory in order to enjoin that the opinion that the auditor provide is free from biases. Auditors provide reasonable assurance upon the financial statements of the company where the auditor expresses the opinion whether the financial statements are free from material misstatement and all applicable standards were followed (Cai, 1997). The assurance regarding the liberty of auditors essential be affirmed, though not completely but to an acceptable level (Silvia, 2010), by providing safeguards upon the issues that threaten the auditors independence. ... The safeguards provided in order to minimize the threat to the independence of the auditors are categorized differently. The safeguards provided ensure that the threats to the independence of auditors are minimise to the acceptable level. Absolute Prohibition The independence of the auditors is strengthened when there is complete prohibition is provided regarding the financial and non-financial chase of the auditor to the client. When the auditor is completely prohibited from possessing any type of interest in the client the independence increases (Peter, 2004). The framework completely restricts the client and auditor to possess any type of relationship whether business or personal. The restriction is imposed upon activities that are to be carried out between the client and the auditor. Permitting But Restricting the intent In several cases the framework permits the auditor to continue with the exercise with the clien t but the extent of the activity and relationship with the client is limited.