Final answer:
An auditor must be independent according to the AICPA Code of Professional Conduct, which requires payment of all outstanding fees before issuing the subsequent year's audit report. Therefore, the unpaid 2013 audit fees should be paid before the 2014 audit report is finalized to maintain the auditor’s independence.
Step-by-step explanation:
The question pertains to the independence of an auditor as per the AICPA (American Institute of Certified Public Accountants) professional code of conduct. Independence is a cornerstone of the auditing profession, which requires auditors to remain free from conflicts of interest and other situations that could compromise their objectivity. According to the AICPA Code of Professional Conduct, specifically under the Independence Rule (ET Section 101), for an auditor to maintain independence with respect to a client, all outstanding fees for any professional services provided to the client must be paid before the audit report for the subsequent year is issued.
In this case, the client company has not paid its 2013 audit fees. For the auditor to be considered independent for the 2014 audit, the AICPA code effectively requires that these fees are paid prior to the completion and issuance of the 2014 audit report. Should the previous year's fees remain unpaid at that time, the auditor’s independence would be considered to be impaired, raising serious concerns regarding the legitimacy of the audit's conclusions.
Therefore, the payment of the 2013 audit fees needs to be made before the audit report for 2014 is finalized and issued. This would assure that the auditor's opinion is not subconsciously influenced by the payment of fees, thus upholding the principles of independence and objectivity that are critical to the auditing profession.