Auditor independence

Okay kiddo, let's talk about something called auditor independence.

You know how sometimes Mom and Dad have a friend come over to check the house and make sure everything is safe and working properly? That friend is kind of like an auditor.

An auditor is a person who checks a company's finances and makes sure everything is correct and legal. They are really important because they make sure that companies are being honest and doing things the right way.

But here's the thing - an auditor needs to be independent. That means they can't be friends with the people who work in the company they are auditing. They need to be able to look at everything without any bias or favoritism.

It's kind of like when you have to make a decision between two friends. You can't be friends with both of them and make a fair decision, right? You need to be impartial and choose what's best for everyone involved.

So, auditor independence means that the auditor needs to be neutral and unbiased when they are checking a company's finances. That way, they can make sure everything is being done correctly and everyone is following the rules.

Does that make sense, kiddo?