CIMA BA4 · Chapter 1 · Question 7 of 10
An accountant is described as having 'independence in appearance'. What does this mean?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Avoiding facts and circumstances so significant that a reasonable and informed third party would conclude that objectivity had been compromised
Explanation
Independence in appearance concerns how a situation looks to a reasonable and informed third party: circumstances that would lead such a person to doubt the accountant's objectivity must be avoided. The state of mind description is independence of mind. Being employed elsewhere or holding no shares are not the definition, although they may help.
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