# Independence

*Professional & Ethics — Finicade finance glossary*

Independence means being free of relationships that could compromise judgement — and being seen to be. The distinction between independence in fact and in appearance is deliberate: a judgement that could reasonably be doubted is already damaged. It's why audit firms face limits on selling consulting to audit clients, why partners must rotate, and why boards are required to seat directors with no executive ties.

**Also known as:** auditor independence, independent director, objectivity

**Related terms:** [Audit](https://finicade.com/glossary/audit), [Conflict of Interest](https://finicade.com/glossary/conflict-of-interest), [Fiduciary Duty](https://finicade.com/glossary/fiduciary-duty), [Corporate Governance](https://finicade.com/glossary/corporate-governance), [Compliance](https://finicade.com/glossary/compliance)

**Taught in:** Math Masters — The Central Limit Theorem

Source: https://finicade.com/glossary/independence