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The AICPA code of conduct Rule 101 Independence, Integrity, and Objectivity requires that auditors are independent...

The AICPA code of conduct Rule 101 Independence, Integrity, and Objectivity requires that auditors are independent of their audit clients both in fact and in appearance. What does this mean? How does the auditor “know” that he/she is independent? How does he/she prove that he/she is independent? If you are an auditor can you accept a deep discount that is normally offered to customers from your audit client? Why or why not?

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Yes, Auditors are independent of their audit clients both in fact and in appearance, these two things should be there in the independent auditor.

Independent Auditor- He is certified public accountant (CPA) who checks, examines and correct the company's financial records and statements independently. He is not affiliated with the company, he is an outsider that does not have any personal interest in the company. He gets only audit fees for his duties so he is known the independent or external auditor. Audit done by independent auditor is called Independent Audit.

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