Based on the above statement, discuss: a) The advantages of auditing done by an independent expert. b) The limitations and challenges that can be facing an independent expert while doing this task. c) The auditor duties and responsibilities in respect of fraud discovering.
) Auditing evolved and grew rapidly after the industrial revolution in the 18th century. With the growth of the
joint stock companies, the ownership and management became separate. The shareholders needed a
report from an auditor, as an independent expert, on the accounts of the company managed by the
board of directors. The original objective of this audit report is to detect and prevent errors and frauds.
Then it shifted to ascertain whether the accounts of the company are true and fair.
Based on the above statement, discuss:
a) The advantages of auditing done by an independent expert.
b) The limitations and challenges that can be facing an independent expert while doing this task.
c) The auditor duties and responsibilities in respect of fraud discovering.
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