November 11, 2014 Articles

An Introduction to Auditor Independence Rules

A basic orientation to the sources and framework of the rules.

By Amelia Toy Rudolph

Accountants performing audits, reviews, or compilations of a client’s financial statements (also referred to as attest engagements) are required to be independent of their client. Over time, the definition of independence has grown in nuance and complexity, as independence rules of varying degrees of specificity have been promulgated by a variety of sources. The application of these rules, however, yields a binary result—the auditor is either independent or not—and the ramifications of an independence violation can be significant.

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