How do you describe auditor's independence? and what are impediments to such?

Independence is important because it is expected from the auditor that the auditor's report will be unbiased. It is possible only if the auditor is independent. Independence means that auditor is allowed to verify all the accounting records, internal controls systems, third party verifications etc according to the statutory laws and international standards on auditing.

Auditor independence can be defined as a reference to the independence of internal or external auditors from parties that might have a financial interest in the business being audited.

Independence requires:

- Independence of mind: The state of mind that permits the provision of an opinion without being affected by influences that compromise professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional scepticism.

- Independence in appearance: The avoidance of facts and circumstances that are so significant that a reasonable and informed third party, having knowledge of all relevant information, including safeguards applied, would reasonably conclude a firm’s, or a member of the assurance team’s, integrity, objectivity or professional scepticism had been compromised.

The use of the word “independence” on its own may create misunderstandings. Standing alone, the word may lead observers to suppose that a person exercising professional judgment ought to be free from all economic, financial and other relationships. This is impossible, as every member of society has relationships with others. Therefore, the significance of economic, financial and other relationships should also be evaluated in the light of what a reasonable and informed third party having knowledge of all relevant information would reasonably conclude to be unacceptable.

Independence is one of the core value of any auditor, be it internal or external. Independence would mean, auditor should be able to form an opinion based on facts, data, reports, dicussions etc. without any bias, hierarchy or whatsoever. Auditor should not hold any operational positions or responsibilities in an organization, which could affect forming an independent opinion. Key criteria is, there should be no influence which may impact auditors opinion or judgement or rating directly or indirectly.

هناك معائر دولية تحكم المدقق ويلتزم بها .

the main role of an auditor is to report on the presentation of the company's books, he should report whether on his view and according to the access leant to him,the books have been presented in the way they are required by the company's act, and the international standards and whether they represent a true and fair view, the auditor's independence is when his opinion as an auditor is not compromised, among things that interfere (impede) with the auditors' independence are chain of reporting, lack of access to books and resources, salary scale, ..........