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Governance, Risk, Audit & Privacy · Foundational

Auditor Independence

Freedom from conditions that threaten the auditor's ability to perform work objectively, in fact and in appearance.

Definition

Independence requires organizational separation, such as reporting to the audit committee, and personal objectivity, such as not auditing systems the auditor designed or operated. Threats include self-review, self-interest, and familiarity. Impairments must be disclosed.

Example

An IS auditor who helped design an ERP's access model should not audit those controls.

Exam tip

If an auditor's independence is impaired, disclose it and reassign the work.

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