independence
The absence of a relationship, obligation, or *conflict of interest that could comprise an auditor’s judgment. In external auditing, independence can be subverted (or can be perceived to be subverted) by many factors, including the following: (i) a financial interest in an *auditee’s business or in an audited transaction; (ii) family or personal relationships with *auditees; (iii) excessive entertaining or hospitality by or with auditees; (iv) lavish *gifts to and from auditees; (v) restrictions on the scope of audit work; (vi) an auditor’s overdependence on fees from one customer; and (possibly) (vii) the provision of lucrative *management advisory services. In addition to these aspects of independence, most of which are manifestations of potential conflicts of interest, the concept is often discussed in terms of a state of mind, involving personal character, ethics, and honesty. Therefore, while it has been suggested that auditing "requires a high level of technical knowledge, integrity, and interpersonal skills" (Beattie et al., 2001, 285, emphasis added), it has also been argued that independence "is an attitude of mind which goes deeper than any formal rules or standards" (Newman, 1964, 148). It is little wonder that Lee (1993, 100) refers to auditor independence as a "multi-dimensional concept." Independence is considered to be essential for an objective, unbiased external *audit opinion: "It is primarily on the basis of its independence that the external audit derives its authority and its acceptance" (Flint, 1988, 29). Or, expressed more evocatively, "the auditor, like Caesar’s wife, must be above suspicion" (Toffler and Reingold, 2003, 251). Further reading: AICPA (1997); Caswell (1999); Mutchler et al. (2001); Stevenson (2002); Windsor and Ashkenasy (1995); Youkins (1983)

Auditor's dictionary. 2014.

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  • Independence — Independence, MO U.S. city in Missouri Population (2000): 113288 Housing Units (2000): 50213 Land area (2000): 78.328220 sq. miles (202.869151 sq. km) Water area (2000): 0.126088 sq. miles (0.326566 sq. km) Total area (2000): 78.454308 sq. miles… …   StarDict's U.S. Gazetteer Places

  • Independence — (eng. Unabhängigkeit) steht für Independence (Zigarren), Zigarrenmarke USS Independence, Schiffe der US Navy Independence (1951), Linienschiff für die Hochseeschifffahrt Orte in den Vereinigten Staaten: Independence (Alabama) Independence (Iowa)… …   Deutsch Wikipedia

  • Independence — puede referirse a: Independence, álbum del grupo Sex Museum Independence Day, película de 1996 Independence Hall, monumento nacional de Estados Unidos USS Independence, nombre de diversos buques estadounidenses Lugares Independence (Alabama)… …   Wikipedia Español

  • Independence — is the self government of a nation, country, or state by its residents and population, or some portion thereof, generally exercising sovereignty. The term independence is used in contrast to subjugation, which refers to a region as a territory… …   Wikipedia

  • independence — UK US /ˌɪndɪˈpendəns/ noun [U] ► POLITICS freedom to make laws or decisions without being governed or controlled by another country, organization, etc.: gain/win/declare independence »The country gained its independence in 1991.… …   Financial and business terms

  • Independence — In de*pend ence, n. [Cf. F. ind[ e]pendance.] [1913 Webster] 1. The state or quality of being independent; freedom from dependence; exemption from reliance on, or control by, others; self subsistence or maintenance; direction of one s own affairs …   The Collaborative International Dictionary of English

  • Independence —   [ɪndɪ pendəns], Stadt in Westmissouri, USA, im östlichen Vorstadtbereich von Kansas City, 112 300 Einwohner; Harry S. Truman Bibliothek.   Geschichte:   Independence wurde 1827 gegründet; Ausgangspunkt der Straße nach Santa Fe, Oregon und… …   Universal-Lexikon

  • independence — (n.) 1630s; see INDEPENDENT (Cf. independent) + ENCE (Cf. ence). Earlier in same sense was independency (1610s). U.S. Independence Day (July 4) recorded under that name by 1791 …   Etymology dictionary

  • Independence — [in΄dē pen′dəns, in΄dipen′dəns] [in honor of JACKSON1 Andrew in allusion to his independence of character] city in W Mo.: suburb of Kansas City: pop. 113,000 …   English World dictionary

  • Independence — (spr. Independ ns), 1) Grafschaft im Staate Arkansas (Nordamerika), 46 QM.; Flüsse: White u. Black Rivers; große Nadelholzwaldungen; Producte: Mais, Weizen, Hafer; Rindvieh; schwarzer Marmor; Dampfschifffahrt auf dem White River; 1850: 7767 Ew.… …   Pierer's Universal-Lexikon

  • Independence — (spr. indìpénnd us), Städte der nordamerikan. Union: 1) Hauptstadt der Grafschaft Jackson in Missouri und Villenvorort von Kansas City, hat höhere Schulen und (1900) 6974 Einw. – 2) Hauptstadt der Grafschaft Buchanan in Iowa, mit kath. Seminar… …   Meyers Großes Konversations-Lexikon

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