It is important for an auditor to be independent both in mind and in appearance. The independence of the auditor is important for the trustworthiness of the auditor. Independence in appearance is the focus of this study and is how independent the auditor appears to be from the perspective of other stakeholders. This will be studied from the perspective of clients. The audit does not only have to be useful for the owners, but also for the client who pay for the audit.

The aim of this study is to explain what factors that are affecting how clients perceive the auditor independence in Sweden. The study also wants to investigate if the client firm size affects the relationship between independence in appearance and factors affecting independence in appearance. To answer this, a questionnaire was sent via email to small and large limited companies in Sweden.

This study found that audit tenure and auditor-client relationship partly have an influence on independence in appearance. How long the client has had the same audit firm is positively related to independence in appearance and how often the client has contact with the auditor is negatively related to independence in appearance. Client firm size couldn’t be used as a moderating variable since too few responses was received.