Which of the following statements is more closely related to independence in fact rather than independence in appearance?
A) The auditors' actual state of mind and unbiased mental attitude.
B) Ownership of a financial interest in a client by an auditors' spouse.
C) Employment of an auditors' child in a position of influence within a client.
D) Ownership of a financial interest in a client by an auditors' distant relative.

Question

Quizplus · Accepted Answer

Independence in fact refers to the auditor's state of mind and unbiased mental attitude, which is closely related to the auditor's ability to make objective and impartial judgments. The other options involve potential conflicts of interest or relationships that could compromise the appearance of independence, but may not necessarily affect the auditor's actual independence in fact.

Which of the Following Statements Is More Closely Related to Independence