Question

Why do you think independence is important in the audit profession? Please reference a specific case from the text or a real world experience in your discussion.

Answer 1

Answer:-

Independence means auditor should not subordinate his interest / judgement to wishes of other person :-

• Independence should be both real and apparent.
• Auditor should work honestly and free from pressure.

Importance for Independence :- Independent audit sall significantly enhance the credibility of financial statement and such financial statement will be easily accepted by users.

Reference case:- U.S Security and Exchange Commission: Strengthening the commission requirements regarding Auditors independence; Title 17 CFR Parts 210, 240, 249 and 274 final rule,27 march 2003