What are independent auditors

What are independent auditors - Certified Public Accountant independent auditors as referee in the financial report. Certified Public Accountant in, then the audit business accounting system and method, and gives a report attached to the company's financial statements. Public enterprises must have their annual financial report audit, accounting firms and any privately owned independent businesses as well as audit work, because they know that the audit report will add to their financial reporting credibility.

A number of leading companies engaged in accounting fraud and fraudulent accounting firm recently found no audit. Enron is one of them. In this case, the audit firm, Arthur Andersen was found guilty of obstruction of justice because it destroyed the audit evidence.

Auditors judge deciding the accounting method, in accordance with generally accepted accounting principles (GAAP). General local, everything in the financial report is a reliable document. But sometimes an auditor will wave a yellow or red flag. Some indicators of potential trouble include when the business capacity to continue the normal operation of the doubt, because what is known as financial needs, which may mean lower cash balances, overdue debt or significant litigation, the company has not paid in cash.

The auditor must exercise professional skepticism, meaning the auditor should challenge the accounting methods and reporting practices of the client, to ensure that its financial statements comply with accounting standards, not misleading - which simply means a considerable financial statements presented. In fact, "fairly presented" is accurate, then used the auditor's report.

Auditors need a good technical know-how, but also need to know how to be tough accounting client. His job is to become shareholders, agents and other users of corporate financial reporting. It is incumbent auditors strictly adhere to accounting standards, and not allow any violation of the slide.