External Auditing Essay Example | Topics and Well Written Essays - 4000 words

External Auditing - Es ordain ExampleExternal auditors have played an important constituent in organisation. Even in corporation which have been spending a lot of money in their congenital auditing system, some have been found to be seeking for the service of external auditors. Therefore at that place is a question that is organism raised on this emerging trend in auditing and the role that is being played by the external auditors in bodied governance.This trend of seeking the service of external auditors has prominent to be an issue in incorporated governance stemming from the understanding of trust that shareholders have on the dialog box and the auditing system of the organization. In many instances, it is the board which is trusted with the everyday running of the organization and therefore it is judge that this board should be trusted even with the results of the internecine auditors. But the new-fangled trend in corporate governance has shown that there is an increas e preference of external auditors as the main auditor for corporation and the internal auditors have been reduced to plying the second role in helping the external auditors in their work. ... But is has as well been realized that the use of the two system helps to ensure transparency in the auditing system and probably breaks a corruption chain that could be running in the corporation. 1.3Why is it an issue nowIn the recent past, corporate governance has become a yardstick in attracting rankors in a corporation. With the increased nakedness in running of corporations corporate governance is the most important aspect which determines how the shareholders have a say in the running of the organisation. The increasing globalisation is opening investment chances in the whole world and this has prompted increased need for openness in running of the corporations. This may be the main reason why organisation have preferred to use the services of external audits in order to show the degre e of openness in the running of the organisation and therefore increase the chance of attracting more investors into the organization. 1.4 What could this research vomit up blowzy onThis research could give important information of the importance of using the service of the external auditors and the internal auditors in order to increase the level of transparency in the running of the organization. The research will shed light on the increased role that is being played by external auditors in corporate governance. Therefore it could explain the reason for increased preference of the service of external auditors in organizations. 2. Background The publish financial statements have become an important tool for investors to make decision whether they are going to invest in an organization or not. The published financial statements are not only important to investors precisely also to creditors and other stakeholders who are interested in a corporation. They are important as