Independence is the avoidance of all relationships that impair or appear to impair the objectivity of the accountant.

Question

Quizplus · Accepted Answer

Independence is a fundamental principle of accounting that requires accountants to avoid any relationships or activities that could compromise their objectivity and their ability to provide reliable and unbiased financial information. This includes avoiding conflicts of interest, undue influence, or close personal relationships with clients or other parties that could create the appearance of bias or partiality. By maintaining their independence, accountants can uphold the integrity and credibility of financial statements and help ensure that they reflect the true financial position of an organization.

Independence Is the Avoidance of All Relationships That Impair or Appear