Why Auditors Must Stay Independent
When your community organisation, charity, or association asks for an audit or review, you might wonder why your auditor says they can’t help with your bookkeeping or tax work. It can seem unhelpful — but there’s an important reason behind it.
Auditors are bound by the APES 110 Code of Ethics for Professional Accountants (including Independence Standards). These rules protect both your organisation and the public interest by ensuring the auditor’s judgement is completely independent.
What Does “Independent” Mean?
Being independent means the auditor must be free from bias, influence, or conflict of interest.
They cannot make management decisions, prepare accounting records, lodge Business Activity Statements, or process payroll.
If an auditor were to prepare your books and then audit them, it would create a self-review threat — they would be checking their own work. APES 110 strictly prohibits this, even for small associations.
Why Independence Protects You
Independence isn’t just about ethics; it’s also about trust.
When an auditor is independent:
The financial statements are objective and credible.
Grant providers and members can rely on the results.
The community can see that your committee acts with integrity.
For incorporated associations in Queensland, the Office of Fair Trading and the Australian Charities and Not-for-profits Commission both rely on this principle when they assess compliance.
What We Can (and Can’t) Do
At J O’Connor Pty Ltd, our independence is central to every engagement.
We:
Perform independent reviews and audits under fixed fees.
Complete work in two weeks, once records are ready.
Provide secure digital signing through Dropbox Sign.
Offer clear guidance on what records your committee needs.
But we don’t prepare BAS, payroll, or bookkeeping services — instead, we can refer you to trusted bookkeeping partners such as BAS Solutions for that support.
In Summary
Independence builds confidence.
It’s what separates an audit or review from routine accounting work — and it’s the reason funders, regulators, and members can trust the outcome.
At J O’Connor Pty Ltd, our independence is your assurance.
