Independence in appearance
Independence in appearance is the avoidance of facts and circumstances so significant that a reasonable and informed third party would likely conclude the firm’s or team’s integrity, objectivity or scepticism has been compromised.
Worked example
The firm assesses whether a close financial connection to the audit client would undermine a reasonable observer’s confidence.
Common mistake
Disclosure alone does not necessarily eliminate a prohibited relationship or an unacceptable appearance threat.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |