Relationship between Auditors and Management

Question: Discuss about the Relationship between Auditors and Management. Answer: Introduction Trust takes years to build, seconds to break, and forever to fix. This is one of the biggest statement that reflects how the management and the subordinates including other stakeholders related in an organization. Auditing is defined to be examination of organizational financial statements, assets and other related document in order to evaluate them if they give through and fair view of the company performance(Schmidt, 2016). Auditing in an organization requires substantial relation between the management and professional auditors who play a vital role in making responsive decision which influence the company operation and performance. Apparently, trust could be broken in few seconds but can be fix forever, according to the international audit guidelines, internal control system should be used by both stakeholders to fix issues which face their operation in the organization(Farber, 2005). Internal control system are the strategic measures which are used to fix the deviation in relation to the opinions and report provided by the internal auditors. While gaining the broken trust and fixing it, management and auditors should consider adopting the pertinent moral principles which will guide their operation and performance. Credibility Credibility is a crucial aspect of determining the relationship between internal auditors and management in an operational organization. It is a fundamental aspect which is focus in addressing the emotional effects which may arise during audit operations, knowledge and experience act as the pillars of credibility between managers and auditors in an enterprise(R , Zhou, Hoang, 2016). Reliability While focusing on how trust is built, broken and its effects are fixed, reliability is one of the main factors which should be used as the methodology. Trust is built by professional managers and auditors when they professionally discuss their stand regarding their responsibilities, it also fails when both parties fail to provide true and fair information which could have been used in making decision to the enterprise. Trustworthiness between is engaged in an organization by engaging on the internal control system and measures which should be used to end the effect of falling trust between internal auditors and senior managers(Farber, 2005). Conclusion Trust between the management and auditors in an organization acts as the platform obtaining relevant information which are used during decision making process. Honesty is a key factor the success of every operating business institution where each individual should be honesty and trustworthy to each other while they perform their respective job functions(Messier Jr, 2016). Trust acts as the pillar to the relationship between the internal auditors and the organizational senior management, this element of relationship takes whole course in order to reach its completion, and on the other hand it takes only few seconds to be brought down. This is when both parties fail to respectively perform their responsibilities as well as trying to act in an unprofessional manner(R , Zhou, Hoang, 2016). Therefore, when analyzing the relationship between managers and auditors in an organization trust should be used as the measurement. References Farber, D. B. (2005). Restoring trust after fraud: Does corporate governance matter?. The Accounting Review. Messier Jr, W. (2016). Auditing assurance services: A systematic approach. McGraw-Hill Higher Education. R , S., Zhou, S., Hoang, H. (n.d.). (2016). Assurance and Other Credibility Enhancing Mechanisms for Integrated Reporting. In Integrated Reporting. Palgrave Macmillan UK. Schmidt, P. (2016). Business in the Cloud: Research Questions on Governance, Audit and Assurance. . Journal of Information Systems.