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b. What is auditor independence and why is it so important? (4 marks)

b. What is auditor independence and why is it so important?

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Answer #1

It refers to the independence of the internal auditor or the external auditor from parties that may have a financial interest in the business being audited. It states that the auditor should carry out his or her work freely and in an objective manner.

It is important so that auditor's opinion can be impartial, unbiased and free from any undue influence to override the professional judgement of the professional accounting. It is a legal obligation for an external auditor to be independent.

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