Which of the following services requires independence from the client?

Independence is a fundamental principle in auditing and is crucial for maintaining the objectivity and integrity of the auditor's work. Among the services listed, the review of financial statements is the one that explicitly requires independence from the client.

When conducting a review, auditors perform analytical procedures and inquiries to provide limited assurance that the financial statements are free from material misstatement. This level of assurance necessitates an independent stance, as the auditor must assess the client's financial reporting without any conflicts of interest that could cloud their judgment.

In contrast, the preparation of financial statements and compilation services do not require the same level of independence. The preparation of financial statements involves the accountant assisting in drafting the financial documents based on information provided by the client, while compilations involve presenting financial information in a structured format without providing any assurances. Both services are considered less objective relative to audits and reviews, hence do not require independence from the client. This understanding reinforces the importance of independence particularly in services that involve assurance, like reviews.