What is meant by 'audit independence' in financial practice?

Audit independence refers to the necessity for auditors to maintain an unbiased and objective stance during their evaluations and reviews of financial statements. This concept is vital in ensuring the integrity of the auditing process, as it helps build confidence in the findings presented.

When auditors are unbiased and objective, they can provide a fair evaluation of the financial reports, free from external pressures or influences that might compromise their judgment. This independence is crucial for establishing the trustworthiness of the audit, which stakeholders, including investors and regulators, rely on for making informed decisions.

In contrast, being indifferent to client opinions does not fully capture the essence of independence since it suggests an emotional detachment rather than a professional responsibility for impartiality. Focusing solely on financial performance would ignore the broader ethical obligations of auditors, including their duty to uphold integrity and transparency. Lastly, asserting that audit independence is not a requirement contradicts the established norms and standards within the auditing profession, which fundamentally emphasize independence as a core principle.