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1、本科毕业论文（设计）外 文 翻 译外文题目 The Realities of Auditors Independence and Objectivity 外文出处 Journal of AccountingBusiness & Management 外文作者 M. Krishna Moorthy 原文：The Realities of Auditors Independence and ObjectivityAhson Umar (2004) states that auditing, like other professions, requires its members to make i
2、mpartial and objective judgements. There are standards and rules governing the work of auditors that emphasize two fundamental issues: First, the need for auditors to avoid any additional economic ties with the client, and, second, the need to be absolutely objective in their approach to the audit a
3、nd the client. However,there has been consistent criticism about the quality of audits, especially after the Saving and Loans Associations failure of the 1980s. Critics have documented numerous instances where auditors fell short of fulfilling their obligations to the society for example, auditors w
4、ere criticised for not warning shareholders and potential investors about the going concern problems of companies that subsequently failed. The author displays two schools of thoughts in his article one of which is that in an actual audit situation, the auditor must maintain a close relationship wit
5、h his/her client in order to understand the operations and obtain appropriate information essential to the formation of his/her opinion. On the other hand, it is psychologically impossible for auditors to be independent and objective because, even an auditor possessing a high level of integrity, can
6、not ignore pressure enforced by management owing to their power to hire and fire auditors at will. They not only have to rely on the management for evidence but also for future streams of revenues that can only be ensured if they continue to serve in their capacity as auditors. The author notes that
7、, in situations when the management is truthful and honest, the relationship between the management and the auditor is of collaboration and the auditor can complete the assignment to his/her complete satisfaction. However, in some situations the relationship between the auditors and the management m
8、ay be antagonistic and anecdotal evidence suggests that, in such situations, client pressure on auditors may constitute a threat to auditor independence and objectivity. Therefore, it would be inaccurate to assume that there is independence of judgement in the auditing profession. So, does that mean
9、 that all auditors are sly and conniving persons?David T. Otley (1996) states that studies carried out in auditing firms in the USA have identified specific types of auditor dysfunctional behaviour, and suggested that these behaviours are strongly linked to the control system in general and to audit
10、 time budgets in particular. Earlier findings from the USA suggest that auditors reactions to tight budgets may have important implications for audit quality. Independent audit exists because of the presence of information asymmetry between management and shareholders. Independent monitoring of the
11、accuracy of financial information produced by management can help reduce the risk of shareholders suffering agency losses. However, the quality of the audit cannot be verified by the shareholders and other users of financial information, so any judgement regarding the value of the audit must therefo
12、re be based, at least partly, on the perceived reputation of the auditor.Targets which are quantified and specific are an important element in an effective management control system. Provided such targets are set at appropriate levels of difficulty, they facilitate the evaluation of performance and
13、the planning of corrective action when necessary. There is also considerable evidence in the psychological literature that the use of precise and quantified targets can result in better performance than when no such targets are set. This, however, is contingent on the motivational capacity of the ta
14、rgets, which depends on the extent to which they are accepted and internalized by subordinates. Auditors are generally in no doubt that meeting time budgets is vital for a successful career. There is therefore strong evidence that meeting budgets in this setting is clearly associated with valuable r
15、ewards. The second factor which is relevant to the motivational impact of budget targets relates to the perceived attainability of those targets. Research evidence has shown that the use of specific,difficult targets can lead to higher performance levels than moderate or easy targets. For audit firm
16、s, there is a need to recognize that audit quality may be increasingly threatened by behaviours which are motivated by the performance evaluation system. The current economic and social environment in which auditors operate seems to present a set of conditions likely to aggravate this threat. The key importance of time budgets and the use made of budgetary information in the evaluation of perform
