Asked by: Octaviano Maximianobusiness and finance executive leadership and management
Can a CPA be objective without being independent?
Last Updated: 22nd April, 2021
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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.