Question

Do you think an external auditor should become friends with the people being reviewed? Explain Please answer in your own words. Do not use outside resources.

Answer 1

An external auditor should be an independent auditor. He should not have any personal or financial relationship with his client or client’s relatives or any party related to the client. If he becomes friend with the people being reviewed, he may fail to imply independent judgement and professional scepticism during the audit procedure. He may try to favour his friend by hiding any material misrepresentation in the financial statements. His audit opinion may be influenced due to his relationship. At the same time, he should not become an enemy of the auditee. He should maintain a professional relationship with the auditee without being his friend.

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