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

Question

Quizplus · Accepted Answer

The highest goal for independence is to be independent in fact and appearance. This means not only being unbiased in fact, but also avoiding any appearance of bias or conflict of interest. Compliance with professional codes of conduct and regulations is important, but they do not necessarily ensure true independence. Being an advocate for shareholders would compromise independence as the auditor's ultimate allegiance should be to the integrity of the audit process rather than a specific group or interest.

Independence in Mental Attitude Is Required of Auditor on All