Difference Between Audit Independence and Objectivity

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Audit Independence:

Audit independence refers to the ability of an audit team to perform an independent assessment without interference from management. It is achieved by having the right people on the audit team and by ensuring that they are free from any influence from management.

Audit independence means that an auditor has no stake in the business being audited.

Audit independence ensures that there is no conflict of interest; it also helps ensure that the auditor can be trusted because he/she will have nothing to gain or lose from the results of the audit.

The Institute of internal auditors (IIA) defines objectivity as the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner.

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Audit Objectivity:

Audit objectivity refers to the impartiality of the auditor's judgment. This is achieved by having the appropriate skills and experience to make objective judgments about the situation being assessed.

Audit objectivity refers to the fact that an auditor’s professional judgment is not influenced by personal interest or bias.

Objectivity means that an auditor does not take sides in a dispute. Auditors are expected to remain impartial, and the audit is done based on facts.

The Institute of internal auditors (IIA) defines objectivity as an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made.


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