Definition of Independent auditor:
Accountant who is not an employee of, and not otherwise related to, the entity he or she is auditing.
Independent auditors are often used—or even mandated—to protect shareholders and potential investors from the occasional fraudulent or unrepresentative financial claims made by public companies. The use of independent auditors became more critical after the implosion of the dotcom bubble and the passage of the Sarbanes-Oxley Act (SOX) in 2002.
An independent auditor is a certified public accountant (CPA) or chartered accountant (CA) who examines the financial records and business transactions of a company with which he is not affiliated. An independent auditor is typically used to avoid conflicts of interest and to ensure the integrity of performing an audit.
How to use Independent auditor in a sentence?
- Independent auditors have a mandate to protect shareholders and potential investors from a public company’s possible fraud and accounting improprieties.
- Independent audits provide a clear picture of a company's worth, which helps investors make an informed decision when considering whether to purchase a company’s shares.
- Independent auditors are certified public or chartered accountants who examine the financial records of companies and are not affiliated with the companies being audited.
- Company managers can use the results of an independent audit to improve company processes.
Meaning of Independent auditor & Independent auditor Definition