A review of foreign researches in the field of auditor independence and audit quality

Subject Areas : Investments

mehdi khorramabadi ¹ ( Assistant Professor of Accounting Department, Payam Noor University, Tehran, Iran. )

Received: 2020-04-28 Accepted : 2020-11-20 Published : 2021-11-22

Keywords: "Independence of the auditor", "audit quality", "importance (influence) of the owner", "non-audit services", "tenure of the auditor",

Abstract :

Purpose: This research comprehensively reviews academic research related to auditor independence and audit quality in order to provide a framework for evaluating the impact of auditor independence on audit quality.Methodology: This research is based on the review of articles published in the last years in nine prominent and international journals related to auditing and accounting, including journals:Auditing: A Journal of Practice and Theory- Accounting, Organizations and Society- Contemporary Accounting Research- Journal of Accounting, Auditing and Finance- Journal of Accounting and Economics- Journal of Accounting and Public Policy- Journal of Accounting Research- Review of Accounting Studies- The Accounting Review, in order to examine the main issues that threaten the auditor's independence. Therefore, the present study is considered among the review studies.Finding: The findings of the research show that the four main issues that threaten the auditor's independence are: a- the importance (influence) of the employer b- non-audit services c- the auditor's tenure and d- the employer's affiliation with auditing institutions. For each of these threats, the findings related to the motivations, perceptions, and behaviors of the auditor and the owner, as well as the effects of each threat on the real and tangible quality of audits and financial reports, have been discussed in detail.Originality/Value: In addition to the development of literature and theoretical foundations related to auditor independence and audit quality, the findings of this research provide a framework for evaluating the impact of auditor independence on audit quality. The indicators presented in the present study can provide opportunities for further research on auditor independence and audit quality.

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