EXTERNAL AUDITOR AUDITS, WHO THEN AUDIT THE AUDITORS?

Abstract

This study focuses on the function of external auditor also known as independent auditors' job, the auditor's report, and the systematic way of financial audit. Also, this study will give an insight about some curiosity on who audit the external auditor. We all know that an external audit expresses an opinion on the fairness of the financial statements presented by the client (auditee). Audit opinion is issued as a proof that a certain company has been audited and the result is written thereof. Auditor is assuring that the audited financial statement can be relied upon in making a decision. On the other hand, a peer review is conducted for external auditor to check if the auditor are following certain quality control standards, and after that a recommendation for improvement is issued about the services rendered by the external auditor.

Key words: External Auditor, Peer review, PCAOB, AICPA, unqualified opinion, qualified opinion, adverse opinion, disclaimer opinion.