The main purpose of performing an audit is to give company shareholders expert and independent opinions related to if the annual accounts of an organization show an actual and fair reflection of the company’s position. Also, an audit shows that annual accounts can be relied on. Through being independent, an auditor shows that he/she can conduct tasks objectively (Thibodeau et al., 2017). An auditor is expected to be independent of the client. This ensures that audit opinion is not under the influence of the relationship between the auditor and the client. In addition, he/she is expected to provide an unbiased as well as honest opinion about the financial statements of a company to shareholders.
In some situations, the independence of external auditors is doubted. As a result, it is argued that unless appropriate corporate governance practices/standards are implemented, an auditing company can provide audit reports that are highly influenced by the need to keep a good relationship with the client. In such a situation, the auditor cannot be considered independent. As a result, shareholders cannot depend on the judgment and the opinion of such auditors. Auditors play a major role in providing independent credibility to financial reports used by different individuals, such as creditors and investors, as a guide for capital allocation (Thibodeau et al., 2017). The perception of the general public on the credibility of financial statements by companies is influenced by the identified effectiveness of auditors in assessing and providing financial reports. Although the effectiveness of auditors involves numerous factors, the most important one is that auditing is conducted in an environment that promotes objective-decision making on major issues that have a material impact on financial reports. Therefore, an auditor has to be independent, as well as in appearance.
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Sometimes, accounting companies engage in established audit fees below the market rate. They cover the deficit through giving services that are not related to audits, such as advice on tax. Consequently, there are some audit companies that have the commercial interests that they need to protect. Such situations raise concerns because the interests of the audit company to protect its interests might conflict with those of protecting the interests of the various stakeholders. This indicates the need for an auditor to be independent. The need for an auditor to be independent is mainly linked to the issue of having many people who would want to use financial statements as well as third parties who may not possess adequate knowledge to comprehend the contents of an organization’s annual accounts. As a result, they depend on the independent examination of the auditor.
From a Christian perspective, an auditor should demonstrate honesty and integrity. In Ephesians 4:15 and 25, it is stated, “ But speaking the truth in love, may grow up into him in all things, which is the head, even Christ . . . Wherefore putting away lying, speak every man truth with his neighbor: for we are members one of another” ( Hendrickson Publishers, 2004) . This shows that auditors, who are believers, should not lie but provide financial statements that show an actual reflection of a company’s financial state. They should tell the truth about the financial position of the company, according to the above Bible verses. Besides telling the truth, honesty means being real with oneself and others also. Jesus is the truth, and therefore, telling a lie involves turning away from Jesus. It is disobedience against the word of God. By being honest, a Christian follows in the footsteps of God because God does not lie. If the goal of a Christian auditor is to become God-centered and emulate Christ, he/she should be honest in all aspects of his/her life, including professional life.
References
Hendrickson Publishers. (2004). The Holy Bible: King James Version .
Thibodeau, J., Strawser, J., Louwers, T., Sinason, D., & Blay, A. (2017). Auditing & assurance services . McGraw-Hill Education.
