Independence

Condition of accountant having no bias and being neutral regarding the client or another party in performing the audit function. Some independence guidelines for an auditor engaged in the attest function include: (1) no family relationship with the client's executives; (2) no financial interest in the company; and (3) no contingent fee based on the type of audit opinion rendered.

Condition of accountant having no bias and being neutral regarding the client or another party in performing the audit function. Some independence guidelines for an auditor engaged in the attest function include: (1) no family relationship with the client's executives; (2) no financial interest in the company; and (3) no contingent fee based on the type of audit opinion rendered. The external auditor must furnish an impartial opinion on the client's financial position and operating performance. The audit opinion is based solely on the evidence found while conducting proper auditing procedures. Independence is created and maintained to enable the auditor to establish credibility for the audit opinion that financial statement users rely upon. See also Independent Accountant.