Independence has two dimensions: independence of mind (objective judgement) and independence in appearance (a reasonable third party would not conclude that independence has been compromised). A financial interest in the audited company, a close family relationship with management or providing advisory services that could affect the audit opinion all threaten independence.
Article 400 of the Turkish Commercial Code and the POA's code of ethics contain provisions protecting the auditor's independence. Audit firms carry out an independence assessment before accepting each engagement.
Source: Turkish Commercial Code No. 6102 Art. 400
Related terms
Professional scepticismThe auditor having a questioning mind, being alert to conditions that may indicate error or fraud and critically assessing evidence.Auditor rotationThe requirement, designed to protect auditor independence, for a company to be audited by another auditor or audit firm after a certain period.Public Oversight Authority (POA)The public authority in Turkey that sets accounting and auditing standards and authorises and oversees independent auditors and audit firms.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 22, 2026 · This definition is for general information only.