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objectivity and independence

JLjihun lee7y ago
Hi Kim, self interest threat, self review threat, familiarity threat, intimidation threat all affects objectivity then how about independence ? can i assme objectivity is basically the same as independence ?
KimKimTutor7y ago#1
Definition - Independence is: (a) Independence of mind – the state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgement, thereby allowing an individual to act with INTEGRITY, and exercise OBJECTIVITY and professional skepticism. (b) Independence in appearance – the avoidance of facts and circumstances that are so significant that a reasonable and informed third party would be likely to conclude, weighing all the specific facts and circumstances, that a firm’s, or a member of the audit or assurance team’s, INTEGRITY, OBJECTIVITY or professional skepticism has been compromised. Independence is not a fundamental principle but underpins two fundamental principles - integrity and objectivity. Ethical threats are not confined to those that affect objectivity and/or integrity but ANY of the fundamental principles - so also include threats to professional competence and due care, confidentiality and professional behaviour. So, for example, a high audit fee creates a self-interest threat to independence (both integrity and objectivity) but pressure to accept a low audit fee (an intimidation threat) might result in an inappropriate reduction in the extent of audit work performed. Although there is an integrity aspect to this there is also a threat to professional competence.
Aasdasdasd7y ago#2
so when it should have been independence and if i write objectivity, i won't get full credit ?
KimKimTutor7y ago#3
You would get full credit - objectivity is the fundamental principle (and you don't have to state every fundamental principle that may be affected by a threat in order to earn the mark).
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