External Auditor Independence

External auditor independence means the auditor is free from influences or relationships that could compromise their objectivity when reviewing a company's financial statements. This independence ensures they can provide an unbiased, honest assessment of the company's financial health. To maintain this, auditors avoid personal or financial connections with the company they audit, and follow strict ethical standards. This independence is crucial for building trust with investors, regulators, and other stakeholders, as it helps verify that the financial information is accurate and reliable without undue influence.