Question

What does it mean to be independent in "fact" and "appearance" - are they the same thing?

Answer 1

Independence in fact refers to whether the auditor has maintained an attitude of independence throughout the audit engagement, rather has he or she been objective.He or she has the abiltiy to make independent audit decisions even if ther is perceived to be lack or it or if the company's management has placed the auditor in a compromising position
independence in appearance is how independent the auditor appears to third parties say users of financial statements
Independence is the essence of professional integrity and primarily a condition of mind , character and appearnace
The auditor might look independent but might not be where e has been associated with the company of which he is doing audit like say he holds a certain percentage of shareholding or he has some direct financial intersest in the enterprise
so independence mean avoidance of any situation which imapirs objectivity or create personal bias on the part of auditor as both independence of appearance and fact are essential and the code of professional conduct