What are the independent auditors?

CPA independent auditors are as arbitrators in the arena of financial reports. ABC is an audit of the accounting system and the methods of the company and gives a report which is attached to the financial statements of the company. Public companies must have their annual financial reports audited by independent companies all private ABC owned and enterprises did so because they know that an audit report will add credibility to their financial reporting audits.

An auditor if judges accounting of the company are generally consistent with accepted accounting principles (GAAP). In General, everything is in place and the financial report is a reliable document.But sometimes an auditor will wave a yellow flag or rouge.Certains indicators of potential problems include of the ability of the company to continue normal operation is in doubt due to the so-called financial requirements, which could mean a balance of low cash, overdue unpaid liabilities or major trials that the company does not have money to cover.

An auditor shall exercise professional scepticism, which means that the auditor must call into question the accounting methods and practices of customer reports to ensure that its financial statements in conformity with accounting standards and are not misleading - in short, that the financial statements are fairly presented. Indeed, the words "fairly presented" are the exact words used in the report of the auditor.

A good listener need technical expertise but it must also know how to be difficult on client accounting methods.His work is to be the agent of the shareholders and other users of financial reports of the company.It is an auditor comply strictly with GAAP and not leave any slide irregularities.

There are a number of well-known companies engaged in accounting fraud recently and that fraud is not discovered by auditors of the CPA.Enron is one of these entreprises.Dans this case, the auditing firm, Arthur Anderson was found guilty of obstruction of justice, because it destroys the audit evidence.