Final answer:
Auditors, like Lolita Sy, compiling financial statements are required to be independent from their clients to maintain objectivity and integrity.
Step-by-step explanation:
In the context of accounting and auditing, independence is a fundamental principle. Auditors, like Lolita Sy who is compiling the financial statements, are required to be independent from their clients. This means that they must maintain an objective and impartial stance, free from any personal or financial interests that could compromise their judgment or integrity.
Independence helps to ensure the reliability and credibility of the financial statements. If auditors were not independent, they might be influenced to manipulate or misrepresent the financial information, which could be detrimental to the stakeholders of the business.
By being independent, Lolita Sy can provide an unbiased and accurate representation of the financial position and performance of Uy Pet Products Company.