The phase “the auditor must be seen to be independent both in fact and
Independent in fact – This is the state of mind that permits the provision of an opinion without being affected influence that compromise professional
judgment, allowing individual to act with integrity and exercise objective and professional skepticism.
Independence in appearance – This is the avoidance of facts and
circumstances that are so significant that a reasonable and informed third party having knowledge of all relevant information, including safeguard applied, would reasonably conclude a firms or members of the assurance team’s integrity, objectivity or professional skepticism had been compromised. This refers to how independent observers perceive the auditors behaviors in relation to performance of his professional duty.