Auditors are required to be “independent” and management accountants are called to be “objective”. how these...

Auditors are required to be “independent” and management accountants are called to be “objective”. how these two concepts are related and how they differ.

Expert Solution

Management accountants keep track of incomes and expenses of a company. They review and analyze information from financial statements of a company. They take care of the daily financial transactions of a company. Their duties include helping management in budgeting, planning, strategizing, decision making and manage company's investments. Basically they assist the management of the company towards achieving its overall objectives.

Auditors, on the other hand, review the financial statements prepared by the management of the entity. The major objective of an audit is to give a true and fair view opinion on the financial statements. It is very important that auditors stay independent during the course of audit. Only then can a true opinion be expressed on the correctness of financial information. They shouldn't be biased and their opinion shouldn't be influenced.

While management accountants work towards achieving objectives of the company, the auditors ensure they are working in accordance with all the statutory and regulatory requirements.

This is why it is said that management accountants are to be objective and auditors are to be independent.

ekkarill92 answered 2 years ago

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