What question did this study set out to answer?

Synthesize academic research on auditor independence and audit quality by evaluating the primary threats to independence and their effects on financial reporting.

August 4, 2014Journal of Accounting Auditing & Finance

Auditor Independence and Audit Quality

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Synthesize academic research on auditor independence and audit quality by evaluating the primary threats to independence and their effects on financial reporting.
Reviewed empirical and theoretical literature published from 1976 to 2013 across nine leading auditing journals.
Categorized research across four core independence threats: client importance, non-audit services, auditor tenure, and client affiliation with audit firms.
Evidence regarding the direct effects of client importance, non-audit services, tenure, and client affiliations on actual and perceived audit quality remains mixed across the literature.
Auditor and client incentives, behaviors, and market perceptions differ considerably depending on the specific threat and institutional regulatory setting.

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Implication

Literature review reveals mixed impacts of independence threats on corporate audit quality, highlighting crucial directions for regulatory oversight.

Cite This Study

Tepalagul et al. (2014) studied this question.

synapsesocial.com/papers/6a126ce345487b7639a6784c https://doi.org/10.1177/0148558x14544505

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Implication

Literature review reveals mixed impacts of independence threats on corporate audit quality, highlighting crucial directions for regulatory oversight.

Auditor Independence and Audit Quality

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Discussion

Implication

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Auditor Independence and Audit Quality

Key Points

Discussion

Implication

Cite This Study

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