Why is it important that external audits be independent audits? What

QUESTION

Why is it important that external audits be independent audits?

What will be an ideal response?

ANSWER

Answer: External audits must be independent because the outsiders for which they are performed rely on them being unbiased opinions about the truth of the financial data being reviewed.
Explanation: External auditors perform audits under the GAAP to fairly present the financial position of a firm. External audits must be independent because the outsiders for which they are performed rely on them being unbiased opinions about the truth of the financial data being reviewed.