Auditing - Auditor Independence

The video tutorial explains the concept of auditor independence, emphasizing the need for auditors to remain neutral and impartial to make objective decisions. It distinguishes between independence in fact, which is the auditor's mental state, and independence in appearance, which is how others perceive the auditor's objectivity. The Sarbanes-Oxley Act (SOX) addresses auditor independence by prohibiting certain non-audit services and relationships, while allowing auditors to prepare tax returns. SOX also mandates a one-year cooling-off period before an auditor can work for a client as a CEO or CFO.

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