Independent auditors should not only be independent in fact they should avoid situations that may lead outsiders to doubt their independence 04 the profession has established, through the aicpa's code of professional conduct, precepts to guard against the presumption of loss of independence. For audits, auditor independence is required by law in the united kingdom and most other countries for the purposes of this note, ‘members’ also includes affiliates, provisional members and, where relevant, firms registered with icaew to carry out audits.
Real independence refers to the actual independence of the auditor, also known as independence of mind more specifically, real independence concerns the state of mind an auditor is in, and how the auditor acts in/deals with a specific situation. Commission approves auditor independence and market structure rules (news story, november 15, 2000 file name: audmarkthtm) the public's profession – remarks of chairman arthur levitt, at the fall council of the american institute of certified public accountants, las vegas, nev, october 24, 2000.
Independence standards board standard no 1 requires that the auditor disclose to the audit committee in writing all relationships between the audit firm and the company that may reasonably be thought to bear on the audit firm's independence. Audit independence is your auditor participating in writing of policies and procedures if so, your audit may be determined as not independent. Ethics & independence as mentioned in rule 3500t, the board's interim independence standards do not supersede the commission's auditor independence rules see rule 2-01 of reg s-x, 17 cfr§ 2102-01 therefore, to the extent that a provision of the commission's rule is more restrictive – or less restrictive – than the board's.
Firms registered with pcaob are required to comply with ethics and independence rules that have been approved by the sec the pcaob has also issued staff guidance applicable to certain ethics and independence rules additionally, in april 2003, the pcaob adopted certain preexisting ethics and independence interim standards.
Pursuant to rule 3500t, interim independence standards consist of independence standards described in the aicpa’s code of professional conduct rule 101, and interpretations and rulings thereunder, as in existence on april 16, 2003, to the extent not superseded or amended by the board, and certain standards, and interpretations, of the independence standards board, to the extent not superseded or amended by the board.