The Effective Board
Auditor Independence Policy
The purpose of an external audit is to enhance the confidence of users of accounts in
their accuracy, the presentation of results and the financial standing of the company.
The need for an audit is created, most obviously in listed and private equity-owned
companies, by the separation of the management from the ownership of a company
and the requirement that management have to account for their stewardship.
Auditors in the UK and most developed economies are appointed by shareholders
to provide an objective independent assessment of whether financial statements are
prepared in accordance with the financial reporting framework, are presented fairly or
give a true and fair view of the results. However, the results of an audit are relied upon
not just by shareholders, but many other stakeholders including lenders, customers,
suppliers, employers and regulators.
A distinguishing mark of an auditor is their acceptance of the responsibility to act in
the public interest. An auditor’s responsibility is not primarily to satisfy the needs
of an individual client or employer. The auditing profession worldwide has agreed
that it is of paramount importance to be seen to be independent and not allow bias,
conflict of interest or undue influence of others to override professional or business
Helping you get it right
For us, good governance is about good performance.
Yes, compliance matters. But our work is about helping you make sure your organisation…is led effectively by a board that adds value…is kept under control through risk management and assurance frameworks that meet your needs…and is “doing the right thing”.Contact