To meet the objective of independence in appearance, the auditor must be perceived by knowledgeable users of financial reports to be independent.

Question

Quizplus · Accepted Answer

Independence in appearance refers to the perception by knowledgeable users of financial reports (such as investors, creditors, and regulators) that the auditor is not biased, does not have a conflict of interest, and conducts the audit impartially. This perception is crucial for maintaining trust in the auditor's opinion on the financial statements.

To Meet the Objective of Independence in Appearance, the Auditor