John Harris is a public accountant and a sole practitioner. He has been practicing as an auditor for 10 years. Recently a longstanding audit client asked John to design and implement an integrated computerized accounting information system. The fees associated with this additional engagement with the client are very attractive. However, John wonders if he can remain objective in his evaluation of the client's accounting system and records on subsequent annual audits if he puts himself in the position of auditing a system he was responsible for installing. John knows that the professional auditing standards require him to remain independent in fact and appearance of all of his auditing clients.
Required
1. What do you think auditing standards mean when they require independence in fact? in appearance?
2. Why is it important that auditors remain independent of their clients?
3. Do you think John can accept this engagement and remain independent? Justify your response.