Research Paper on:
Independent Auditor's Role

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does not bear its share of the load, loses its integrity, then the whole structure is weakened as well. Therefore, it is of primary concern that in a company, the  independent auditor do his/her best to periodically diagnose the financial stability of the company and if required to make suggestions for growth or improvement to the administration. Recently, there  has been much attention given to the Enron, Inc. situation. The effects of the collapse of the company have had, it might be said, a ripple effect, which have affected  even those who do not own shares in the company. Many are blaming the internal auditors for not catching the mistakes, for not informing the administration, and it brings to  question the ability of an auditor to be completely independent. Perhaps, if Enron is anything at all, it is an example of what may occur if the independent auditor is  not truly independent. That being said, can there ever truly be independence on the part of an auditor? Audit failures rarely result from the deliberate collusion of auditors with clients  and instead, auditors may find it psychologically impossible to remain impartial and objective.1 This is especially true when an independent auditor begins to develop a working relationship with the  company. Most companies utilize an independent auditor in one capacity or another. It tends to lend credibility to the facts and figures that the administration puts forth, especially if managements  figures match those of the auditors. Where this can get everyone into trouble, however, is when the auditors unbiased opinion and figures, become biased. In very few instances does  a biased opinion or deliberate misrepresentation occur. It happens, rather, on an almost psychological level, some experts state. The danger that most auditors face, it can be assumed, is when