According to the Code (0.400.21), independence of mind is the state of mind that permits a member to perform an attest service without being affected by influences that compromise professional judgment, thereby allowing an individual to act with integrity and exercise objectivity and professional skepticism. Independence in appearance is the avoidance of circumstances that would cause a reasonable and informed third party with knowledge of all relevant information, including the safeguards applied, to reasonably conclude that the integrity, objectivity, or professional skepticism of a firm or member of the attest engagement team is compromised.

These two types of independence are similar as both contribute to an auditor's overall independence. For an auditor to be independent, they must have independence in appearance and independence of mind. Additionally, both independence types affect the credibility of the audit.

One main difference between the two types of independence is that one relates to how...

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