For more than 100 years, Hood & Strong has built its reputation on integrity, objectivity and professional excellence. Central to that commitment is strict adherence to the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct and its independence requirements.
Auditor independence is fundamental to maintaining trust in the financial reporting process. By remaining objective and free from conflicts of interests, we provide stakeholders such as lenders, investors and other users of the financial statements, assurance about whether or not financial statements are fairly presented and prepared in accordance with applicable standards. Our longevity as a respected firm reflects our unwavering dedication to these principles.
Independence in Fact and Appearance
The AICPA Code requires independence in both fact and appearance.
- Independence in fact means maintaining an objective state of mind — performing engagements with integrity, professional skepticism and sound judgment.
- Independence in appearance means avoiding circumstances that could lead a reasonable third party to question that objectivity.
At Hood & Strong, we evaluate independence in light of the totality of circumstances. Even matters that may appear minor on their own are carefully considered in context, ensuring that our objectivity and integrity is never compromised.
Recognizing and Managing Potential Threats
The AICPA Code outlines several categories of potential threats to independence, including advocacy, familiarity, management participation, self-review, and undue influence. Our firm maintains robust policies and procedures designed to identify, assess and address these risks proactively.
We do not assume management responsibilities, promote client interests in ways that impair objectivity, or place ourselves in positions where we would audit our own work without appropriate safeguards. Where potential threats are identified, we implement safeguards — and when necessary, we decline or adjust engagements to protect our independence.
Strong Safeguards and Quality Management
Independence is not a one-time consideration; it is an ongoing commitment embedded in our quality management system. Hood & Strong maintains comprehensive internal policies that include:
- Annual independence confirmations from partners and professional staff
- Monitoring of financial interests and employment relationships
- Clear engagement acceptance and continuance procedures
- Documentation of identified threats and safeguards applied
- External peer reviews of our quality management system
These measures, along with professional education requirements and licensure standards, reinforce a culture where ethical conduct and independence are nonnegotiable.
A Commitment That Defines Our Firm
Our clients, their stakeholders and the broader financial community rely on our objectivity. Maintaining independence is not simply about regulatory compliance — it is foundational to the trust placed in our work.
Hood & Strong’s century-long history is built on doing the right thing, even when it requires difficult decisions. Our adherence to the AICPA Code of Professional Conduct reflects the standards that have guided us for generations and that will continue to define us well into the future.
