1. Introduction1.1 The objectives of the audit Under the legislation, directors are required to annually produce financial statements which give a true and fair view of the company's affairs and its profits and losses for the period and are accountable to shareholders. Auditors have the responsibility to plan and perform the audit to obtain reasonable assurance for a company's shareholders and other stakeholders on the financial statements. The objective of the audit of financial statements is to obtain reasonable assurance as to whether the financial statements as a whole are fair. free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework; and report on the financial statements and communicate as required by the HKSAs, in accordance with the auditor's findings. (HKSA 200.11) In order to preserve the integrity, objectivity and independence of the auditor, audit standards have been issued to measure the quality of the auditor's performance. Auditing standards are general guidelines that help auditors fulfill their professional responsibilities in auditing financial statements. They include consideration of professional qualities such as competence and independence, reporting requirements and evidence. (Soltani, 2007)1.2 Code of Ethics for Audit Independence Audit independence is a very critical component if a company wishes to have an audit function that can add value to the organization. The audit report and opinion must be free from any bias or influence if the integrity of the audit process is to be assessed and... at the heart of the paper... to assist auditors in detecting fraud and increasing the emphasis on professional skepticism.4. RecommendationsSince professional independence and skepticism are more important for an auditor regarding the audit engagement. It is recommended that auditors increase professional skepticism towards financial statement auditing. This includes increasing the auditor's ability to detect fraud through training, improving ability through experience, and increasing commitment to the audit plan. In order to strengthen auditor independence, directors should disclose fees for audit and non-audit services to investors and allow investors to evaluate auditor independence. By separating the auditor's duties for audit and non-audit services, it may be helpful to maintain the auditor's independence. Strengthening the internal control system and corporate governance can help reduce the risk of fraud.