Asked by: Octaviano Maximiano
business and finance executive leadership and management

Can a CPA be objective without being independent?

21
It is possible for someone to be independent but not objective, and it is equally possible for someone to be objective without being independent. Standard 1100 states: "The internal audit activity must be independent and internal auditors must be objective in performing their work."


Keeping this in view, what is the difference between independence and objectivity?

In addition to "organizational independence," the Standards also clearly define objectivity. "Objectivity is an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made.

Also, would it be possible to be objective when auditing a friend's financial statements? An auditor's independence refers to the independence of the auditor from the parties that are connected to the company or which have a financial interest in the firm. Yes, it is possible to be objective while auditing the financial statements of a friend's company.

Accordingly, what makes an auditor independent?

Auditor independence refers to the independence of the internal auditor or of the external auditor from parties that may have a financial interest in the business being audited. Independence of the internal auditor means independence from parties whose interests might be harmed by the results of an audit.

What does independence mean in accounting?

Independence generally implies one's ability to act with integrity and exercise objectivity and professional skepticism. The AICPA and other rule-making bodies have developed rules that establish and interpret independence requirements for the accounting profession.

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Can a CPA auditor be independent without being objective and can a CPA auditor be objective without being independent?

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What is auditor independence and objectivity?

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What are the major threats to independence?

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What is self review threat?

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22nd April, 2021

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