Meaning of the phrase “the auditor must be seen to be independent both in fact and appearance”

adventure arid barren coast

This phase “the auditor must be seen to be independent both in fact and appearance”




Independent in fact

This is the state of mind that permits the provision of an opinion without being affected by the influence that compromises professional judgment, allowing individual to act with integrity and exercise objective and professional skepticism.

Independence in appearance

This is the avoidance of facts and circumstances that are so significant that a reasonable and informed third party having knowledge of all relevant information, including the safeguard applied, would reasonably conclude a firm or members of the assurance team’s integrity, objectivity, or professional skepticism had been compromised.




This refers to how independent observers perceive the auditor’s behaviors in relation to the performance of their professional duty.

2 thoughts on “Meaning of the phrase “the auditor must be seen to be independent both in fact and appearance””

  1. Pingback: meaning and examples of insurable and non-insurable risks - ACCOUNTING FREE RESOURCES

  2. Pingback: DIFFERENCE BETWEEN THE EMPHASIS OF MATTER PARAGRAPH AND OTHER MATTER PARAGRAPH

Comments are closed.