“Auditors are well-trained professionals with a clear financial incentive to properly regulate their affairs. They should therefore be left alone to do so rather than being subject to external regulation. » An auditor conducts an impartial review. and evaluating the financial statements of a company/organization. This examination can be carried out internally or externally. Auditors are closely monitored and strictly regulated, breaches of the rules can result in service charges through government legislation, for example the Companies Act 2004 and the Statutory Act 2006. The government decides who should supervise and regulate the work of auditors. In addition, the Financial Reporting Council monitors the auditing profession and works closely with the ICAEW, which also regulates the work of auditors. The best possible explanation for auditor independence (lack of regulation). can be found in the Statement on Auditing Standards (paragraph 2, section 220). The Statement on Auditing Standards states that the auditor “shall be impartial towards the audited client,” adding that “independence does not imply the attitude of a prosecutor but rather judicial impartiality.” As other high-profile business scandals have come to light in recent years, the importance of auditor regulation has increased significantly. Debates are growing over whether or not auditors should remain free from external regulation. Therefore, this essay will conclude whether or not auditors should regulate their affairs without external regulation. Regulation of auditors ensures that fundamental principles of accounting, objectivity and integrity are maintained. Auditors must remain objective while preparing the financial report, lack of objectivity...... middle of paper ......reliability and reliability of the financial report is crucial as it also directly affects the users of the financial report, such as shareholders. Regulation can ensure that reliability and credibility are maintained to high standards. Auditors can do their work without being regulated, if they remain both professional and ethical. Additionally, external regulation has sometimes been found to be flawed, which is significant because a lot of time and money is spent regulating auditors and clients. However, it is extremely difficult to operate without regulation because auditors may work in a biased environment and may also develop a relationship with the client. It is essential that auditors remain objective and impartial. External regulation ensures that auditors are. Therefore, auditors should not be left alone to regulate their own affairs, but nevertheless subject to external regulation..