From the course: Audit and Due Diligence Foundations

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Independence

Independence

From the course: Audit and Due Diligence Foundations

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Independence

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- Independence for CPAs doesn't mean that CPAs will create their own flag, their own country, or have a cookout to commemorate the event of their independence, but it is one of the most important parts of an audit. In audit, independence is a very specific and important thing. It means that the accountant doing the audit is only doing the audit and no other accounting work for the company it's auditing. The AICPA has a very specific definition of independence which includes two critical elements. First, there's independence of mind. This means that a CPA doing an audit will not be impacted by factors that could compromise their professional judgment. This allows the CPA to act with integrity and exercise objectivity as well as professional skepticism. The second critical element of independence is independence in appearance. This requires the auditor to avoid circumstances that would give the appearance of a conflict of…

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