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Auditing is as old as Accounting. The
auditing was invented decades ago. Auditing is an assurance service, which
gives an independent opinion based on the audit to most of the people who do not
have direct access to the business information. The audit is a systematic and independent
verification of information which are gathered based on
the financial statement, records, operations
and performances given by the board of a company for
a stated purpose. Auditor independence is deliberated as a
significant attribute for auditing. Independence requires integrity and
an independent approach to the audit
process.  To understand more about audit
and auditors independence many studies have been carried out by researchers
with different perspective (Jeppesen, Kim (1998), Flint,D (1998), De Angelo, R
(1981), European Commission Green paper, 
Michael, Power (1996)).  


In related to the research Jeppesen, Kim
(1998) believes that independence is the foundation or the keystone of auditing
theory; and it is quoted that “without independence auditing simply becomes
Comparatively in the European Commission Green paper (2010) it is quoted that “Independence
should be the unshakeable bedrock of the audit environment” (p. 10)2.
However it is agreed that the auditor independence has limitations even though
it is highly essential in auditing.

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The auditors collect audit reports from a variety of sources;
they often have to rely on management to determine the logic of the financial
statements. This means that management utilizes the trial, it is usually
difficult to ensure that the administration represents the correctness of its
decision with external evidence. On the other hand, fraudulent fraudsters are
hidden and therefore the audit has become dangerous for audible surveillance
methods. Traditionally, the auditors face strict time limits, including their
opinions given in the financial statements. In some cases, the audit fails to
consider important issues in the final report of the audit report at a certain
time to meet the appointment deadline. Although the moral guidelines to
minimize the incidents of audit barriers, it is inevitable to resolve disputes
at certain levels of comfort.

conclusion it is undeniable that the auditor independence has its own
limitations even though the power to control and define independence has become
more and more important to the auditing industry and to everyone who shows
interest in a particular business and auditing regulations. Both the authors
have significantly similar perspectives and clearly illustrated about the
limitations in the auditor independence.


Jeppesen, Kim (1998) Reinventing auditing, redefining consulting and
independence. European Accounting Review, 7:3, p.527) 

European Commission Green paper, Audit Policy: Lessons from the Crisis. COM
(2010) 561 final, p.10)


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