Independence
Auditor independence comprises independence of mind and independence in appearance. The auditor must be able to exercise objective professional judgement and avoid facts and circumstances that would lead a reasonable and informed third party to conclude that independence is compromised. Identify, evaluate and address threats using the applicable ethics framework.
Worked example
A team member holds shares in the audit client; the firm assesses the prohibition and removes the interest or takes other required action before the engagement.
Common mistake
Independence is not merely a declaration that the auditor personally feels unbiased.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |