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Sir, I am having doubt on what is the difference between independence of mind and independence of appearance??
How to differentiate in what situation we should use integrity, independence or objectivity? because I saw this 3 words keep interchangeable using in ethics question.Integrity and Objectivity are two of the fundamental ethical concept: you have to behave in these ways. Independence is not a fundamental ethical concept. It is a state of mind
However, if you are not independent, you will not be able to act objectively or with integrity.
Independence of mind = really independent
Independence of appearance = you seem convincingly independent to other people.So, if you own 10 shares in your audit client, you could well be independent of mind (because 10 shares are probably not worth that much), but other people might nevertheless think you are not independent because of that.
Is that means independence of mind indicates that even though u are having financial interest in the audit client, it does not influence your judgement in forming an opinion. However, independence of appearance indicates that it SEEMS like you are independent from the client. For example, you do not own any share in the client so others think that u are independent from the client, but at the back you may not be as independence as to what others thought.
Am I understand it correctly?
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