Question: SEC & PCAOB Independence rules require that an auditor be independent in fact and independent in appearance. What does it mean to be independent in

SEC & PCAOB Independence rules require that an auditor be independent in "fact" and independent in "appearance".

  1. What does it mean to be independent in "fact" and "appearance" - are they the same thing?
  2. If they are different, why do you think an auditor must adhere to both requirements?
  3. What might happen if an auditor only adheres to one (fact or appearance)?

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