Which type of auditors are contracted by companies for the purpose of ensuring impartiality?

Independent auditors are contracted by companies to provide an objective assessment of financial statements and ensure impartiality in their reporting. Their primary role is to review a company's financial reporting to confirm that it adheres to generally accepted accounting principles (GAAP) or other relevant standards. Since they are not part of the company and do not have any stake in its performance, independent auditors can offer an unbiased perspective, which is essential for stakeholders relying on the financial health of the organization.

The reliance on independent auditors is particularly important in fostering transparency and building trust among investors, creditors, and other stakeholders. By having an external party examine the financial records, companies can demonstrate their commitment to integrity and accountability in reporting. This process also helps to identify any discrepancies or issues that may need to be addressed, contributing to overall business improvement.

The other types of auditors, such as internal auditors, governmental auditors, and regulatory auditors, have different roles and purposes. Internal auditors typically work within the organization to assess risk and ensure compliance with internal policies and procedures, which might limit their impartiality if they are too closely linked to management. Governmental auditors are focused on compliance with laws and regulations at the public sector level, while regulatory auditors are often involved in ensuring adherence to specific industry regulations. While