THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS

LIST OF ABBREVIATIONS i INTRODUCTION 1 CHAPTER 1. THEORETICAL FRAMEWORK OF INDEPENDENCE AND THE FACTORS AFFECTING THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS 2 1.1. The concept of independence and the importance of independence in auditing 2 1.2. Factors affecting independent auditor’s independence in auditing financial statements. 5 1.2.1. Personal characteristics of auditors 5 1.2.1.1. Professional ethics 5 1.2.1.2. Educational qualifications 6 1.2.1.3. Professional experience 6 1.2.2. Environmental factors group in auditing 7 1.2.2.1. Audit fees 7 1.2.2.2. Nonaudit service 9 1.2.2.3. Auditing business management 10 1.2.2.4. Audit Tenure 11 1.2.2.5. Scale and reputation of the auditing company 12 1.2.2.6. Legal environment and competitive environment 13 1.2.2.7. Risks of the auditing profession for auditors. 13 1.3. Independence of independent auditors in financial statement audits in countries around the world. 14 1.3.1. Legal regulations related to auditors independence in some countries. 14 1.3.2. Some cases related to the auditor’s independence in auditing in the world. 19 CHAPTER 2. THE CURRENT PRACTICE OF MAINTAINING THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS IN VIETNAM. 25 2.1. Overview of the independent audit field and auditor’s independence in auditing financial statements in Vietnam. 25 2.2. Some cases related to the auditor’s independence in auditing in Vietnam. 28 CHAPTER 3. ASSESSMENTS AND RECOMMENDATION TO IMPROVE INDEPENDENT AUDITORSS INDEPENDENCE IN VIETNAM 31 3.1. Assessment the practical situation related to the independence of independent auditors in Vietnam. 31 3.1.1. Advantages 31 3.1.2. Disadvantages 32 3.2. Recommendation to improve auditor’s independence in Vietnam. 34 3.2.1. From the governments perspective: 34 3.2.2. From the professional associations perspective: 36 3.2.3. From the auditors’ perspective: 37 3.2.4. For users of Financial Statements perspective: 38 CONCLUSION 40 REFERENCES 41

THE ESSAY ON AUDITING TOPIC: THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS Hanoi, 2023 TABLE OF CONTENTS LIST OF ABBREVIATIONS i INTRODUCTION CHAPTER THEORETICAL FRAMEWORK OF INDEPENDENCE AND THE FACTORS AFFECTING THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS 1.1 The concept of independence and the importance of independence in auditing 1.2 Factors affecting independent auditor’s independence in auditing financial statements 1.2.1 Personal characteristics of auditors 1.2.1.1 Professional ethics 1.2.1.2 Educational qualifications 1.2.1.3 Professional experience 1.2.2 Environmental factors group in auditing 1.2.2.1 Audit fees 1.2.2.2 Non-audit service 1.2.2.3 Auditing business management 10 1.2.2.4 Audit Tenure 11 1.2.2.5 Scale and reputation of the auditing company 12 1.2.2.6 Legal environment and competitive environment 13 1.2.2.7 Risks of the auditing profession for auditors 13 1.3 Independence of independent auditors in financial statement audits in countries around the world 14 1.3.1 Legal regulations related to auditor's independence in some countries 14 1.3.2 Some cases related to the auditor’s independence in auditing in the world 19 CHAPTER THE CURRENT PRACTICE OF MAINTAINING THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS IN VIETNAM 25 2.1 Overview of the independent audit field and auditor’s independence in auditing financial statements in Vietnam 25 2.2 Some cases related to the auditor’s independence in auditing in Vietnam 28 CHAPTER ASSESSMENTS AND RECOMMENDATION TO IMPROVE INDEPENDENT AUDITORS'S INDEPENDENCE IN VIETNAM 31 3.1 Assessment the practical situation related to the independence of independent auditors in Vietnam 31 3.1.1 Advantages 31 3.1.2 Disadvantages 32 3.2 Recommendation to improve auditor’s independence in Vietnam 34 3.2.1 From the government's perspective: 34 3.2.2 From the professional associations' perspective: 36 3.2.3 From the auditors’ perspective: 37 3.2.4 For users of Financial Statements perspective: 38 CONCLUSION 40 REFERENCES 41 LIST OF ABBREVIATIONS AICPA American Institute of Certified Public Accountants AASC AASC Auditing Firm Company Limited AISC Auditing & Computing Service Company Limited CEO Chief Executive Officer CFO Chief Finance Officer CDI Career Development Institute Deloitte Deloitte Vietnam Company Limited E&Y Ernst & Young Vietnam Limited GAAS Generally Accepted Auditing Standards IAGs International Auditing Guidelines IFAC International Federation of Accountants ISA International Standards on Auditing ISB Independence Standards Board ISO International Organization for Standardization IAS International Accounting Standards ISA International Auditing Standards IFRS International Financial Reporting Standards IAR Internal Audit Regulations ICC Internal Control Committees i OECD Organization for Economic Cooperation and Development PEEC Professional Ethics Executive Committee PCAOB The Public Company Accounting Oversight Board POB Public Oversight Board PRB Peer Review Board PwC Price Waterhouse Coopers Vietnam Limited Company QCIC Quality Control Inquiry Committee SEC Securities and Exchange Commission SSC State Securities Commission SPPIA Standards of Professional Practice for Internal Auditor US United States UK United Kingdom VND Vietnam Dong VACO VACO Auditing Company Limited WTO World Trade Organization ii INTRODUCTION When the economy develops, the auditing activities also develop to keep up with the pace of the economy Auditing activities instill trust in those concerned about a company's financial situation and the actual operations of that company, helping them make informed decisions to maximize benefits Auditing, from its inception, has aimed to independently examine the financial status of the audited entities Throughout its development, the services that auditing performs have become richer and more diverse, but its core purpose of independent examination has been maintained and strengthened It is crucial that auditors maintain independence in every audit they participate in; otherwise, the significance of auditing activities will be lost Independence allows auditors to make unbiased assessments and ensure accuracy and fairness in their evaluations I would like to choose the topic “The independence of independent auditors in auditing financial statements” for the essay on auditing The content of the report consists of main parts: Chapter Theoretical framework of independence and the factors affecting the independence of independent auditors in auditing financial statements Chapter The current practice of maintaining the independence of independent auditors in auditing financial statements in Vietnam Chapter Assessments and recommendation to improve independent auditors’ independence in Vietnam The content of this article is derived from available sources and documents, which have been extensively researched and synthesized to provide comprehensive information CHAPTER THEORETICAL FRAMEWORK OF INDEPENDENCE AND THE FACTORS AFFECTING THE INDEPENDENCE OF INDEPENDENT AUDITORS IN AUDITING FINANCIAL STATEMENTS 1.1 The concept of independence and the importance of independence in auditing Roger W Bartlett (1993) defined auditor independence as "an objective mindset in making decisions about audit work and financial statements" Accordingly, independence is understood as the absence of any material or psychological interests that could influence one's integrity, objectivity, and professional independence during the auditing process The independence of auditors is a fundamental principle in auditing, which ensures the credibility and objectivity of audit reports It refers to the auditors' ability to maintain an unbiased and impartial stance while performing their duties According to the Generally Accepted Auditing Standards (GAAS), the independence of an auditor depends on both the inherent nature of the auditor and the perception of the public Even though the inherent nature of an auditor may not allow any factors to influence their independence, including economic or emotional relationships with the audited entity, it is still necessary to ensure the formal manifestation of independence For example, if an auditor is involved in economic or personal relationships, the public may perceive that independence is not guaranteed, even if the auditor's inherent nature is independent Therefore, the independence of an auditor according to GAAS is closely related to the public's perception To enhance the independence of auditors, it is necessary to improve the public's understanding of the relationship between auditors and clients, as well as address the importance of formal aspects According to the International Auditing Guidelines (IAGs) issued by the International Federation of Accountants (IFAC), one of the basic principles throughout the audit is integrity, objectivity and independence of the auditor, which are specified in document IAG3 issued in October 1980 Requires that "the auditor must be straightforward, honest and have a professional conscience, must be a pure person and not allow bias to overwhelm objectivity; Auditors must have an impartial attitude, not influenced by material interests because that is not consistent with objectivity and integrity” Based on the Code of Professional Ethics for Accountants and Auditors in Vietnam, auditors are obligated to maintain independence from the audited entity This ethical code, as outlined in Circular No 70/2015/TT-BTC issued by the Ministry of Finance on May 8, 2015, emphasizes the importance of both independence of mind and independence in appearance The purpose of this requirement is to ensure that auditors can provide unbiased audit opinions that are not influenced by any factors By maintaining independence from the audited entity, auditors can uphold their integrity, objectivity, and adopt a skeptical professional attitude The ethical code specifically prohibits auditors from accepting audit engagements from entities in which they have economic or financial interests, such as share ownership or loans Moreover, auditors should avoid engaging with companies that have personal relationships To further reinforce independence, auditors are also advised not to provide audit services to client entities for which they offer other consulting services This separation of roles prevents any conflicts of interest that may compromise the auditor's objectivity and impartiality In 1981, in his research, DeAngelo argued that "audit quality, as perceived by the market, is the ability to detect and report material misstatements in the audited entity's financial statements." The ability to detect misstatements depends on the competence of auditors, where auditors should possess the necessary knowledge and experience to identify errors Reporting misstatements, on the other hand, relies on auditors' independence from the audited company Therefore, while competence is considered a necessary condition, independence is seen as a sufficient condition to ensure audit quality Auditor independence is of great importance in auditing because it ensures the value of the audit as following: First, Objectivity and Impartiality: Independence ensures that auditors maintain an unbiased and neutral perspective when assessing an organization's financial statements By being independent, auditors can provide an objective opinion on the accuracy and fairness of the financial information, free from any undue influence or bias Second, Credibility and Trust: The credibility and trustworthiness of financial statements heavily rely on the independence of auditors Stakeholders, such as investors, lenders, and shareholders, rely on audited financial statements to make informed decisions The assurance provided by independent auditors adds credibility to the financial information and enhances stakeholders' trust in the organization Third, Detection of Errors and Fraud: Independent auditors serve as a crucial line of defense in detecting errors and fraudulent activities Their objective perspective allows them to thoroughly examine the financial records and identify any irregularities or misstatements that may indicate fraud or intentional manipulation of financial information Fourth, Compliance with Standards and Regulations: Auditors are responsible for ensuring compliance with applicable accounting standards and legal regulations Independence helps auditors adhere to professional standards and ethical guidelines without any fear of external pressures or conflicts of interest Fifth, Maintaining the Integrity of the Audit Process: Independence plays a vital role in preserving the integrity of the audit process It helps prevent any undue influence, intimidation, or control from the audited entity This independence ensures that auditors can exercise professional judgment and skepticism, raising potential issues or concerns without hesitation Sixth, Public Interest and Market Confidence: The independence of auditors is crucial for upholding the public interest and maintaining market confidence When stakeholders, regulators, and the general public perceive audits as objective, independent, and reliable, it fosters confidence in the financial markets and contributes to the overall stability and transparency of the economy To reinforce auditor independence, regulatory bodies, and professional standards, such as the International Standards on Auditing (ISA) and local laws and regulations, establish specific requirements and safeguards These measures aim to minimize threats to independence and ensure that auditors maintain their objectivity and impartiality throughout the audit process 1.2 Factors affecting independent auditor’s independence in auditing financial statements Until now, many researchers in the world and in Vietnam have studied the factors influencing the independence of auditors aiming to enhance audit quality To summarize, the independence of auditors in auditing financial statements is influenced by the following key factors: 1.2.1 Personal characteristics of auditors 1.2.1.1 Professional ethics The most noticeable professional attitude factor is self-interest There have been numerous studies on this aspect in the field of accounting and auditing However, until 2003, Armstrong & Owsen reaffirmed that: "Previous studies mainly analyzed the formation and future trends of professional ethics in terms of emotions and rationality, but did not really focus on training good ethics, starting from the perspective of behavior and motivation of learners and practitioners." Therefore, there is a need for recommendations for professionals, learners, and educators to adhere to ethical professional standards The authors also showed that accounting students often use ethical factors to cover up and justify their behavioral misconduct independence and perceived independence Actual independence occurs when auditors are able to maintain an unbiased attitude throughout the auditing process, while perceived independence is how users perceive auditors as independent individuals Independent auditing activities are gaining the trust of businesses in Vietnam This can be explained by the high quality of independent auditing services and the trust that financial statement users place in the independence of independent auditors 2.2 Some cases related to the auditor’s independence in auditing in Vietnam * Nam Viet Auditing Company violated independence by colluding with clients during the audit process According to the investigation conclusion, Ms Bui Thi Ngoc Lan, Director of the Financial Consulting and Accounting Services Company and Nam Viet Audit Company - Northern Branch, manipulated the audit results to facilitate the Tan Hoang Minh Group in falsifying poor financial records of its subsidiaries to appear profitable in order to issue bonds, thereby misappropriating billions of Vietnamese dong from investors The auditors seriously violated Vietnamese auditing standards in providing financial report auditing services and also breached professional ethics by colluding with the client during the auditing process Instead of working in accordance with the prescribed standards of Vietnam's auditing, with the Board of Directors of Ngoi Sao Viet Company and Soleil Investment and Hotel Travel Joint Stock Company, both subsidiaries of the Tan Hoang Minh Group, Bui Thi Ngoc Lan directly approached and coordinated with the Deputy Director of the Finance and Accounting Center, who was also the Chief 28 Accountant of the Tan Hoang Minh Group, as well as the Chief Accountant of Soleil Investment and Hotel Travel Joint Stock Company, to sign the audit contracts Ms Bui Thi Ngoc Lan assigned her auditors as the audit team leaders at Ngoi Sao Viet Company and Soleil Company, along with audit assistants, to perform the auditing tasks for the individual and consolidated financial reports for the year 2020 of these two companies During the audit process, numerous key items were not thoroughly checked or lacked appropriate auditing evidence, yet conclusions were still drawn For shortterm and long-term financial investments, no verification or comparison with original documents was conducted – only photocopies of transfer contracts were relied upon to determine the investments as of December 31, 2020 Furthermore, through adjusting accounting entries, Bui Thi Ngoc Lan intentionally portrayed a more favorable financial and business operation status for Ngoi Sao Viet Company and Soleil Company to indicate that these two companies had made profits in 2020, and subsequently issued an audit report with an unqualified opinion According to the investigative agency, the unqualified audit opinion for the 2020 financial reports of Ngoi Sao Viet Company and Soleil Company was not in compliance with the requirements of Vietnamese auditing standards, as the auditors failed to collect sufficient proper audit evidence as the basis for forming their audit opinion *The auditor of S&S Auditing and Consulting Co., Ltd violated independence for self-interest This is a case that occurred at the S&S Consulting and Audit Limited Liability Company (Ho Chi Minh City) 29 In 2011, Mr Nguyen Duy Xuyen (Director of the State-owned One-member Limited Liability Company Quang Trung Mechanics, concurrently Director of the General Enterprise) and Ms Tang Thi Thanh Ha (Chief Accountant of the Company) falsified the 2010 financial report with the purpose of borrowing money from a bank The fraudulent report contained figures that did not match the actual financial report prepared on March 3, 2011, signed by Mr Nguyen The Phuong General Director and Ms Ha To legitimize the forged report, Mr Xuyen contacted a staff member of the S&S Audit Company At that time, the genuine financial report had been audited by the Hung Vuong Audit Company, and the S&S Audit Company did not have an audit contract with Quang Trung Company However, the auditor Phung Trung Kien from S&S Audit Company deliberately violated professional ethics and independence of auditors for personal gain Mr Kien signed the falsified audit report on March 12, 2011 (the same day as the genuine financial report) and forged the signature of his superior, Mr Sam Han Lee - Director of the Company Upon reinvestigation in 2019, the investigative agency confirmed that Mr Kien admitted to the forged signature in the audit report However, the collected evidence was insufficient to determine if Mr Kien signed with the intention to aid Mr Xuyen in creating a loan application to misappropriate funds As a result, the investigation was suspended, and criminal liability for this auditor was waived Nevertheless, this case represents a violation of professional ethics by the auditor during their work 30 CHAPTER ASSESSMENTS AND RECOMMENDATION TO IMPROVE INDEPENDENT AUDITORS'S INDEPENDENCE IN VIETNAM 3.1 Assessment the practical situation related to the independence of independent auditors in Vietnam 3.1.1 Advantages Vietnam is generally becoming more and more like the rest of the world, particularly in terms of its stricter adherence to IFRS Audit quality is prioritized because the younger, prospective workforce is oriented toward the profession's honest, reliable values The quantity of independent auditing firms operating outside of the BIG4 is rising in Vietnam The younger generation's dynamic, upbeat outlook and manner of working only serves to heighten the profession's gravity, demeanor, and ethical standards In terms of quality, the majority of auditors are rigorously trained in professional expertise and relevant knowledge, strictly adhering to ethical principles, with independence being a core principle of auditors Recently, Vietnam has been monitoring and updating changes to the professional ethics standards of accounting and auditing set by IFAC in order to compile and create Vietnamese standards that are relevant to international practices The Ministry of Finance released 37 Vietnamese auditing standards in December 2012 with the goals of strengthening the system of professional standards in the independent auditing field and promoting the creation of new services In order to develop, compile, and update the second phase of ten Vietnamese standards on assurance services, related services, professional ethics, and auditing, the Vietnamese Association of Certified Public Accountants (VACPA) continued to collaborate with the Ministry of Finance, businesses, and researchers from 2013 to 2015 The standards were based on the most recent international professional standards published by IFAC On May 8, 2015, the Ministry of Finance issued Circular No 70/2015/TTL-BTC on the promulgation of the second-phase standards 31 Vietnam also produces guidance materials to support its members to understand and implement auditing standards, as well as professional ethics standards These include the sample audit program for auditing financial statements, containing guidance materials for complying with professional ethics standards; the sample audit program for the audit of project completion settlement reports; and the quality control regulations for auditing enterprises Annually, the Ministry of Finance coordinates with VACPA to participate in quality control audits at auditing firms, including compliance with professional ethics standards Regarding updates on professional ethics knowledge, each practicing auditor must undertake a minimum of four hours of professional ethics training each year to be updated on new provisions 3.1.2 Disadvantages Besides the positive aspects of auditor independence in Vietnam, there are also some limitations regarding auditor independence as follows: • Related to audit fees It is a fact that auditors receive audit fees, which creates an urgent and compelling need for auditors to ensure that they not jeopardize this source of income In reality, the audit fees tend to be negotiated with the client's management This means that the management can pressure auditors to limit the extent of their investigation or penalize them for expressing honest opinions in reports by withholding a deserved fee The client's management can also influence the auditor's ability to continue receiving fees in the future by attempting to replace them with another firm This means auditors face explicit conflicts of interest and the potential loss of clients is highly likely It is very difficult to measure the extent of disagreement between auditors and management and the impact of these conflicts 32 However, audit fees are not the sole motivator for the collaboration between auditors and clients Independent audit firms also derive a portion of their income from providing consulting services, such as tax advice and various business management advisory services, with these fees often not being disclosed This means that auditors may become dependent on the client's management to continue a lucrative consulting contract, the value of which is often undisclosed, and its existence may be kept confidential The issue here is that the services provided by auditors may not align with the role of an auditor • Related to non-audit services In fact, many audit firms still provide additional services beyond assurance services to clients, which may lead to the risk of self-review and negatively affect the independence of auditors when auditing financial reports Businesses often tend to use multiple services provided by an audit firm, and the audit firms, in seeking to increase revenue and profits, often agree to provide these services This leads audit firms to self-review the core services they provide to clients, leading to the risk of: (1) being subjective and overlooking errors, if the services provided are correct, or (2) concealing errors and fraud committed in the past • Related to business environments A characteristic of auditing in Vietnam is that the business environment still relies heavily on personal relationships, which hinders auditors from achieving full independence During their work, there is still a lack of independence due to personal relationships within the company There have even been cases where auditors prepared the financial reports of a business and later audited those same reports, borrowing each other's practicing certificates During the audit process, auditors observed commercial irregularities and value-added tax discrepancies but did not report them to the authorities Moreover, many auditors have failed to 33 "qualify" suspicious items in financial reports Therefore, the independence of auditors is still limited 3.2 Recommendation to improve auditor’s independence in Vietnam The independence of auditors must be maintained to protect and enhance the credibility of the profession The responsibility of auditors extends beyond meeting the needs of individual clients or businesses where they provide services; they must also understand and adhere to ethical standards for the benefit of the public 3.2.1 From the government's perspective: Ensuring organizational independence: • Establishing an independent audit organization that is not directly dependent on the state agency it is auditing • Ensuring sufficient financial resources for the audit organization to operate independently and without influence from the state agency Independence in the audit process: • Establishing detailed and transparent audit procedures that are not interfered with by the state agency • Ensuring auditors have full access and are not restricted in gathering information and data from the state agency Auditor training and standardization: • Ensuring auditors receive specialized training in auditing and regulations regarding independence • Developing training and standardization programs for auditors that cover their rights and responsibilities in ensuring independence Promoting accountability and transparency: 34 • Requiring state agencies to publicly disclose financial information and activities • Providing public access to audit reports and audit findings Strengthening independent evaluation: • Ensuring auditors have the freedom to evaluate analyses and audit findings without interference from the state agency • Promoting the use of international and national standards in the audit process to ensure independence and quality Establishing supervision and feedback mechanisms: • Establishing independent supervision mechanisms to ensure the accuracy and independence of the audit process • Providing strong feedback and taking strict actions in cases of interference with auditor independence Risk management: • Building a risk management system to deal with pressures and interventions that may affect auditor independence • Ensuring the independence of risk management decisions and their implementation These recommendations aim to ensure that auditors have the ability to carry out their work independently and without interference from the state agency However, implementing these recommendations requires strong commitment from the state agency and changes in current regulations and procedures In addition to directly improving the independence of auditors in auditing, the state should also implement the following issues to raise awareness of auditor’s independence: 35 • It is necessary to establish a legal framework for professional activities in the current market comprehensive economy This regulatory includes documents, researching highlighting the and issuing roles and responsibilities of professional organizations and associations • Raise awareness of professional ethics among auditors by mandating that practitioner’s complete professional ethics courses in order to be granted licenses or certifications Without manipulating official data, emphasis should be put on identifying and honoring people and institutions that satisfy the standards of openness, truthfulness, and integrity • Put policies in place to stop unethical behavior Particularly, since mistakes in the field of independent auditing can have serious detrimental effects on society, the economy, and the financial market, severe sanctions should be placed on auditors who transgress ethical standards • Enhance communication, monitoring, and enforcement of compliance with professional standards for certain regulated business professions, including independent auditing 3.2.2 From the professional associations' perspective: • Develop mechanisms to disseminate ethical standards requirements to professional practitioners Regular advising and guidance should be provided to auditors on implementing ethical standards in their professional work • Enhance training and development, especially in collaboration with international professional organizations experienced in applying ethical standards Regularly connect and update professionals with international standards to keep pace with global developments • Strengthen the inspection and supervision of members and auditors in their professional activities According to experts, professional organizations encourage and monitor all members to maintain proper ethical conduct and compliance with regulations Although the disciplinary measures imposed by 36 professional organizations not carry the same weight as court judgments, they still have a significant impact For example, although the highest penalty is expulsion from the professional organization, which does not involve compensation or criminal liability, it can still lead to the revocation of the accounting practice license Therefore, controlling unethical conduct through professional ethics regulations can be even stricter than legal means, as professional organizations can adjudicate misconduct even without sufficient legal obligations 3.2.3 From the auditors’ perspective: Independence in audit work: • Establishing detailed and transparent audit procedures that are not interfered with by any relevant parties • Ensuring auditors have full access to information and documents related to the audit and are not restricted in gathering necessary information Rights and responsibilities of auditors: • Ensuring auditors have the right and responsibility to independently make decisions and conclusions in the audit process • Developing and applying professional and ethical standards for auditors to ensure independence and quality in their work Evaluation and monitoring: • Establishing independent evaluation mechanisms to ensure accuracy and independence in decision-making and audit conclusions • Strengthening supervision of auditors' activities, including external and internal evaluations within the audit organization Enhancing transparency and disclosure: 37 • Requiring auditors to publicly disclose information about the audit process, methods, and audit findings in a transparent manner • Creating conditions for transparency and disclosure in accessing information and audit results for stakeholders Additionally, auditors should: • Having a broad and comprehensive understanding of various fields and aspects related to the profession is essential Actively engaging with the practical aspects of the profession helps to develop knowledge both theoretically and practically Understanding the requirements of professional ethics for auditors, encompassed in Circular No 70/2015/TT-BTC, is crucial • Continuously improve professional development through advanced training courses Regularly learn, share experiences with peers, and adhere to professional ethics standards • Regularly cultivate and develop the qualities of a professional practitioner, including being observant, independent, impartial, careful, diligent, and responsible Maintain a curious and learning attitude and draw practical experience This practice contributes to the development of professional skills and the qualities necessary to become a professional practitioner 3.2.4 For users of Financial Statements perspective: Selecting an Independent Auditor: • Understand the process and criteria for selecting an independent auditor who has no affiliation with relevant parties • Conduct surveys and evaluations of the skills, experience, and reputation of auditors before selecting Ensuring the Independence of the Auditor: 38 • Require auditors to provide information on policies and measures to ensure independence, including measures to address potential conflicts of interest • Review and verify the independence of auditors by requesting relevant documents, certifications, and papers Reviewing the Audit Contract: • Ensure that the audit contract is clearly and specifically defined, including the scope of work, responsibilities of the auditor, and terms regarding independence • Ensure that the contract does not contain provisions or regulations that may potentially affect the independence of the auditor Collaborating with the Auditor: • Provide sufficient and accurate information and documentation to the auditor to ensure an effective audit process • Ask questions and request the auditor to provide clear explanations regarding detections, opinions, and conclusions in the audit report Evaluating the Audit Results: • Read and thoroughly understand the audit report and accompanying information • Carefully evaluate the auditor's opinions, findings, and conclusions, and fully understand their significance and importance Proposing Improvements: • If there are any issues related to the independence of the auditor, contact the auditor or the regulatory authority to provide feedback or propose improvements • Participate in the process of proposing and evaluating measures to enhance the independence and quality of the auditor's work 39 CONCLUSION The audit profession emerged and developed within the economy to provide an objective opinion on the fairness and reliability of financial information, thereby instilling confidence in the decisions made by various stakeholders such as management, investors, and financial institutions Therefore, auditors need to adhere to the requirements and principles of professional ethics The foremost and critical element among these is the independence of auditors Auditors must not only be independent in form but also in thought to ensure a high level of confidence in the opinions expressed regarding financial reports I hope this topic will provide valuable information to serve various purposes in reinforcing issues related to the independence of auditors In this article, I have researched and synthesized the knowledge acquired The article presents the 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