The professionals of auditing play an absolutely vital role in our capital markets. Transparent, informative and accurate financial reports are the basis of the market and essential for investors to make assertive decisions on how to allocate their capital.
Auditor independence is part of the foundation of the audit profession. auditing. An auditing independent, reliable and ethically sound lends credibility to the company and allows the public to have confidence in the accuracy of results and the integrity of the accounting profession. Since the early 2000s, a series of publicized accounting scandals involving corporate fraud has brought to the fore the question of audit independence.
An independent auditor will examine financial statements and other data that evaluate business operations and procedures. as part of a auditing, he can discuss issues with management and staff to gain a better understanding of the way the company operates. Furthermore, professionals auditing they can track a company's physical inventory count, perform various analytical procedures and verifications, and test supporting documents. These processes help them ensure that company assets are properly valued and that tax codes and laws are adhered to. The professionals of auditing they can also provide valuable recommendations on ways to achieve greater efficiencies for the business.
A auditing
provides assurance to investors and creditors that company funds are properly handled. Auditors protect the public from investing in companies that use corrupt business practices or that try to defraud investors with false financial statements. When reviewing the financial statements and researching the accounting records, the auditing
can determine whether the financial statements and records accurately portray the true financial profile of the company. Although hiring a high-quality independent auditor is a unilateral responsibility, compliance with auditor independence rules is a shared responsibility between the company, its committee and auditor.
The auditors, together with the clients of auditing should carefully consider the scope of their work and any work that is not auditing permitted that have been pre-approved by the committee, in order to avoid prejudice to independence. For example, an auditor providing non-recurring services auditing a company that has an active mergers and acquisitions business model, must continually monitor the impacts of all these transactions on its auditing
to ensure that the auditor remains independent from all of its clients of
auditing.
A auditing
independent acts as a certificate of the company's integrity, confirming that it follows the best accounting practices. Its main objective is to prove the veracity of accounting records, bringing, in addition to the advantages already mentioned, collaboration for the culture of corporate governance. That's because the auditing independent also contributes to internal controls by qualifying the information used internally by the company, helping in strategic planning and decision making.
A auditing independence emerged from the opening of companies' capital, but, in particular, with the need to combat possible manipulation of information and fraud. So, the main purpose of the auditing
it is to prove the veracity of the records and accounting information presented by a company, in addition to allowing the implementation of corrective actions to minimize errors, prevent failures and obtain more efficient and transparent processes. Audit planning is necessary to define the organization's future objectives and formalize aspects directed by the auditor in the execution of the work, facilitating communication and the performance of tasks.
Get in touch with TATICCA – ALLINIAL GLOBAL, which works with integrated auditing services, internal audit, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training, for more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has certified methodologies for carrying out activities.