What are the independent auditors?
Independent of CPA Auditors are as arbitrator in the arena of financial reports. The CPA is an audit of accounting and business methods and provides a report that is associated with the financial statements of the company. Property public companies are required to have their annual financial reports audited by an independent CPA firms and private companies have done well because they know that credibility of report of control of their financial reporting will add checks.
Judges of an accountant or accounting of the company are in accordance with generally accepted accounting principles (GAAP). In General, everything is there, and the financial report is a reliable document. But sometimes an accountant is waves a yellow or red flag. Some indicators of potential problems when the company the opportunity to continue the operation of normal doubt because of the demands supposedly, which could mean a low balance, unpaid, overdue or important cases obligations that the company had no money to cover.
An auditor should exercise professional skepticism, which means that the auditor must challenge the accounting methods and practices of the client reports to ensure that its financial statements with the accounting standards in accordance and step mislead in briefthat the financial statements are properly presented. Indeed, the words "fairly presented" are the exact words used in the report of the auditor.
A good auditor required technical knowledge, but must also know how hard on the accounting methods for the client. His work is the agent of the shareholders and other users of the financial report of the company. It is the task of an accountant to maintain strictly defined by GAAP and does not leave the irregularities of each slide.
There are a number of well known companies that recently in fraud accounting and that the fraud was discovered by CPA Auditors. Enron is one of these companies. In this case, is the audit firm, Arthur Andersen guilty of obstruction of Justice, because the audit evidence destroyed.
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