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Hello Kim,
Accompanying the client to a meeting with their bankers will create an advocacy threat to objectivity as Leopard & Co may be perceived to be representatives of Cheetah Co.
Why the situation is not creating advocacy threat to independence instead? since Leopard may be perceived to be representing the interest of Cheetah in front of the bank, and thus compromising the independence. (ie. this indicates that Leopard is lacking independence in appearance.)
One other issue, is “independence in mind” equal to “objectivity”?
Thank you.
Regards,
MarthewYou could have said independence rather than objectivity and what you have suggested is fine.
The terms are often used interchangeably but objectivity is more specific. Independence is the broader term and independence of mind is “the state of mind … that allows an individual to:
– act with integrity and
– exercise objectivity and professional skepticism”So independence of mind = integrity + objectivity (these are the fundamental principles)
For the case in question we are not doubting the integrity of the audit firm’s representatives who would attend the meeting so we can refer just to objectivity.
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