Auditor independence is a fundamental principle in the accounting profession that ensures auditors can perform their duties with objectivity and without bias. It is crucial for maintaining the integrity of financial reporting and protecting the interests of investors and other stakeholders. Engagements That Require Auditor Independence In general, auditor independence is required for all attest engagements, which are engagements in which the auditor expresses an opinion or provides assurance on the subject matter presented by the responsible party. Attest engagements encompass a wide range of services, including: Audits of financial statements: Auditors assess whether financial statements are presented fairly and in accordance with generally accepted accounting principles (GAAP). Audits of internal control over financial reporting (ICFR): Auditors evaluate the effectiveness of an entity's internal controls in preventing and detecting fraud and ensuring the reliability of financial reporting.. Engagements That Do Not Require Auditor Independence Auditor independence is not required for non-attest engagements, which are engagements in which the auditor does not express an opinion or provide assurance on the subject matter presented by the responsible party. Examples of non-attest engagements include: Bookkeeping and accounting services: Auditors prepare or maintain financial records without expressing an opinion or assurance on their completeness or accuracy. Tax preparation and planning services: Auditors assist clients in preparing tax returns and planning for future tax liabilities.