Generally, the role of the auditor while an independent individual who is equiped to investigate the organization, its records, and the monetary statements ready from them, and thus form an opinion on the precision and correctness of the assertions (Millichamp, 2002) is understood by everyone. But occasionally the carry out and self-reliance of auditors are doubtful as there are situations showing that the behavior of auditors will be deviated off their profession where auditors care about their own advantage. Therefore , review committees happen to be needed. Review committees includes non-executive directors who in charge of all matters relating to session, resignation and removal of auditors. The committees make a fantastic impact on the conduct of audit plus the independence of external auditor.
THE CONDUCT OF AUDIT
According to Loebbecke and Arens, 1996, someone said that audit report can be used to inform users what the auditor did and the conclusions come to. According to Millichamp, 2002, he declared that most auditors' reports are positive and end with a statement conveying the auditors' opinion the fact that financial assertions show a genuine and reasonable view and comply with statutory requirements. Taxation report is important for shareholders and stakeholders of the business so that the audit report need to have professional normal quality. Taxation committees can be said as the representative of investors and stakeholders. Therefore , the directors and auditors would not have contractual relationship, it might prove that the audit report is proven as true and fair view and in addition can help to raise the confidence of shareholders and stakeholders towards the audit report. Audit committees also can reveal the economical statements towards the shareholders and stakeholders with audit statement prepared by auditor. Conduct of audit which includes accounting devices, internal settings, audit assessment, analytical assessment techniques, operating paper, information to company directors or management and the...
References: Arens, A. A., and Loebbecke, M. K., 1996, " Auditing – An Integrated Approach”, sixth Edition, Singapore, Prentice-Hall, Incorporation.
Millichamp, A., 2002, " Auditing”, eighth Edition, British, Thomson Learning.
Watne, D. A., and Turney, L. B. M., 1990, " Auditing EDP Systems”, 2nd Edition, Usa State, Prentice-Hall, Inc.