Enhancing perceptions of auditor independence

✍ Scribed by Michael A. Pearson

• Book ID: 104748167
• Publisher: Springer
• Year: 1985
• Tongue: English
• Weight: 428 KB
• Volume: 4
• Category: Article
• ISSN: 0167-4544
• DOI: 10.1007/bf00382673

✦ Synopsis

Financial statement users must believe that external auditors are free from management control, or users will doubt the verity of auditors' representations. Although U.S.-based auditing firms claim they are independent of their corporate clients, research has demonstrated that many individuals and groups perceive the situation otherwise. A proposal for enhancing perceptions of auditor independence is offered in this article. The proposal calls for an auditor-administered educational program, complemented by corporate audit committee involvement to lend credibility to auditors' claims.