Independence in mental attitude is required of auditors on all audit engagements.Which statement best describes the highest goal for independence?
A)To comply with the AICPA Code of Professional Conduct.
B)To be independent in fact and appearance.
C)To be an advocate for shareholders and other users of financial information.
D)To comply with SEC regulations.

Question

Quizplus · Accepted Answer

The highest goal for independence is to be independent in fact and appearance. This means that auditors not only avoid actual bias or influence from the audit client, but also appear to be free from such influence to maintain the public's confidence in the credibility of the audit report. Compliance with the AICPA Code of Professional Conduct and SEC regulations are necessary, but they alone do not assure independence. Being an advocate for shareholders and other users of financial information is not the primary goal of auditors; rather, their ultimate goal is to provide unbiased and reliable information to aid decision-making.

Independence in Mental Attitude Is Required of Auditors on All