Auditor independence is supported by robust audit firm policies and procedures. Firms of all sizes have extensive internal controls in place to monitor conflicts of interest during the financial reporting process, and these rules contribute to thousands of high-quality audits each year. Notably, the policies and procedures that public company audit firms put in place are only one part of the system of checks and balances – In fact, it is a shared responsibility among company management, auditors, and audit committees to maintain auditor independence.
Independence is not just a compliance exercise, it is foundational to audit quality. Receiving assurance from an independent third party with relevant expertise, objectivity, and integrity has long been a pillar that provides confidence in public company-reported financial information.