Auditing is as old as Accounting.

Theauditing was invented decades ago. Auditing is an assurance service, whichgives an independent opinion based on the audit to most of the people who do nothave direct access to the business information. The audit is a systematic and independentverification of information which are gathered based onthe financial statement, records, operationsand performances given by the board of a company fora stated purpose. Auditor independence is deliberated as asignificant attribute for auditing. Independence requires integrity andan independent approach to the auditprocess.  To understand more about auditand auditors independence many studies have been carried out by researcherswith different perspective (Jeppesen, Kim (1998), Flint,D (1998), De Angelo, R(1981), European Commission Green paper, Michael, Power (1996)).   In related to the research Jeppesen, Kim(1998) believes that independence is the foundation or the keystone of auditingtheory; and it is quoted that “without independence auditing simply becomesmeaningless”1.

Comparatively in the European Commission Green paper (2010) it is quoted that “Independenceshould be the unshakeable bedrock of the audit environment” (p. 10)2.However it is agreed that the auditor independence has limitations even thoughit is highly essential in auditing. The auditors collect audit reports from a variety of sources;they often have to rely on management to determine the logic of the financialstatements.

This means that management utilizes the trial, it is usuallydifficult to ensure that the administration represents the correctness of itsdecision with external evidence. On the other hand, fraudulent fraudsters arehidden and therefore the audit has become dangerous for audible surveillancemethods. Traditionally, the auditors face strict time limits, including theiropinions given in the financial statements. In some cases, the audit fails toconsider important issues in the final report of the audit report at a certaintime to meet the appointment deadline.

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Although the moral guidelines tominimize the incidents of audit barriers, it is inevitable to resolve disputesat certain levels of comfort.Inconclusion it is undeniable that the auditor independence has its ownlimitations even though the power to control and define independence has becomemore and more important to the auditing industry and to everyone who showsinterest in a particular business and auditing regulations. Both the authorshave significantly similar perspectives and clearly illustrated about thelimitations in the auditor independence. 1Jeppesen, Kim (1998) Reinventing auditing, redefining consulting andindependence.

European Accounting Review, 7:3, p.527) 2European Commission Green paper, Audit Policy: Lessons from the Crisis. COM(2010) 561 final, p.10)