Auditor Independence in Fact: Research, Regulatory, and Practice Implications Drawn from Experimental and Archival Research

    Authors

    B. K. Church; J. G. Jenkins; S. A. McCracken; P. B. Roush;J. D. Stanley

    Comments

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    Abbreviated Journal Title

    Account. Horiz.

    Keywords

    auditor independence; independence regulation; independence in fact; LARGE ACCOUNTING FIRMS; NONAUDIT SERVICE FEES; CONFLICTS-OF-INTEREST; CORPORATE GOVERNANCE; CLIENT RELATIONSHIP; EARNINGS MANAGEMENT; QUALITY; JUDGMENTS; COMMITTEE; OPINIONS; Business, Finance

    Abstract

    Notwithstanding various safeguards intended to enhance auditor independence in fact, regulators including the PCAOB have continued to express concerns that auditors, at times, are failing to maintain an appropriate level of independence. In this paper, we provide an analysis of selected academic studies related to auditor independence to offer readers a foundation on which to evaluate the substantial body of research in the area and to understand the mixed findings reported in experimental and archival studies. We discuss issues surrounding the research designs and methods used in prior work, highlighting challenges that face researchers. Subsequently, we take stock of what we have learned from our analysis and consider the research, regulatory, and practice implications of our conclusions. We also offer avenues for future research and highlight specific issues that warrant further investigation.

    Journal Title

    Accounting Horizons

    Volume

    29

    Issue/Number

    1

    Publication Date

    1-1-2015

    Document Type

    Article

    Language

    English

    First Page

    217

    Last Page

    238

    WOS Identifier

    WOS:000351648700010

    ISSN

    0888-7993

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