American Institute of Certified Public Accountants (AICPA) Practice Exam

Objectivity in an auditor's role is associated with which of the following?

1. Financial independence from clients

2. Honesty and impartiality

3. Client satisfaction above all else

4. Personal feelings about the client

The correct answer is: Honesty and impartiality

Objectivity in an auditor's role is fundamentally tied to the concepts of honesty and impartiality. This means that an auditor must approach their work without bias or personal influence, ensuring that all judgments and conclusions are made based on facts and evidence. This impartial stance enables auditors to provide reliable and credible assessments of financial statements or compliance with regulatory requirements, which is crucial for maintaining the trust of stakeholders, such as investors and regulators. While financial independence from clients does contribute to an auditor's objective stance, it does not fully define objectivity, as it is more about ensuring an unbiased perspective in the evaluation process. Prioritizing client satisfaction above all else would conflict with the auditor's responsibility to provide an honest assessment, as it could involve compromising the integrity of their findings. Similarly, allowing personal feelings about a client to influence an audit would directly undermine the objectivity required in the profession. Therefore, honesty and impartiality encapsulate the essence of what it means for an auditor to maintain objectivity in their work.