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What are the fundamental principles of professional ethics for auditors? What is auditor independence and why is it essential? What is a self-review threat, with an example? What is confidentiality and when can it be overridden? What is integrity in the context of auditing? What are the main threats to auditor independence? What safeguards can mitigate threats to independence? How do audit fees create threats to independence? What is a familiarity threat and how is it managed? How does the conceptual framework approach to ethics work?
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What is objectivity and how does it differ from independence?

Beginner

Answer

Objectivity is the state of mind that excludes bias, conflict of interest, and undue influence from others when exercising professional judgment. Independence is the freedom from relationships/interests that threaten objectivity—a means of supporting and demonstrating objectivity, especially in audits. Objectivity is the underlying principle; independence protects it in appearance and fact.
Real-world example An auditor with no financial stake in the client can more credibly exercise objective judgment on its accounts.

Common follow-ups: Is independence the same as objectivity? | How does independence support objectivity?

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All 18 Ethics & Independence questions