1. Auditors must not only appear to be independent; they must also be independent in fact.

Required:

1. Explain the concept of an auditors independence as it applies to third-party reliance upon financial statements.
2. What determines whether or not an auditor is independent in fact?
3. What determines whether or not an auditor appears to be independent?
4. Explain how an auditor may be independent in fact but not appear to be independent.