Article Sidebar

Download
Download Article

Main Article Content

Abstract

This qualitative research explores the influence of auditor independence on audit quality from diverse stakeholder perspectives within the auditing profession. The study aims to elucidate the perceptions, experiences, and challenges faced by auditors, corporate executives, and investors regarding auditor independence and its impact on audit quality. Semi-structured interviews and document analysis were employed to collect data, allowing for a comprehensive understanding of stakeholder perspectives. The findings reveal divergent viewpoints on the concept of auditor independence, with auditors emphasizing ethical principles and regulatory oversight, corporate executives highlighting the collaborative nature of the auditor-client relationship, and investors emphasizing the need for transparent financial reporting. Factors influencing auditor independence, such as auditor tenure, fee dependency, provision of non-audit services, and regulatory frameworks, were identified and discussed. Despite the complexities inherent in maintaining independence, stakeholders recognize the importance of regulatory interventions, ethical guidelines, and stakeholder engagement in safeguarding auditor independence and enhancing audit quality. Moving forward, efforts to enhance auditor independence and audit quality should prioritize regulatory reform, ethical leadership, and collaborative solutions within the auditing profession.

Keywords

Auditor Independence Audit Quality Stakeholder Perspectives Regulatory Frameworks Ethical Guidelines

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Kurniawan, E. (2023). The Influence of Auditor Independence on Audit Quality: A Qualitative Research. Golden Ratio of Auditing Research, 3(1), 46–56. https://doi.org/10.52970/grar.v3i1.376
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abbott, L. J., Parker, S., & Peters, G. F. (2000). Audit committee characteristics and restatements. Auditing: A Journal of Practice & Theory, 19(2), 47-66. https://doi.org/10.2308/aud.2000.19.2.47
  2. Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice-Hall.
  3. Daniels, A. (2011). The impact of audit firm rotation on perceived independence and audit quality: Evidence from the UK. Journal of Accounting and Public Policy, 30(5), 469-490. https://doi.org/10.1016/j.jaccpubpol.2011.05.003
  4. DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183-199. https://doi.org/10.1016/0165-4101(81)90002-1
  5. Gul, F. A., Wu, D., & Yang, Z. (2009). Do individual auditors affect audit quality? Evidence from archival data. The Accounting Review, 84(1), 163-195. https://doi.org/10.2308/accr.2009.84.1.163
  6. Haeridistia, M. (2019). The influence of auditor independence on audit quality: A case study approach. International Journal of Economics, Commerce and Management, 7(1), 12-22. https://doi.org/10.24088/ijecm.2019.71002
  7. Hay, D. C., Knechel, W. R., & Wong, N. (2006). Audit fees: A meta-analysis of the effect of supply and demand attributes. Contemporary Accounting Research, 23(1), 141-191. https://doi.org/10.1506/H6HC-3J0G-0UM9-5X1E
  8. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
  9. Krishnan, J. (2005). Audit quality and the pricing of discretionary accruals. Auditing: A Journal of Practice & Theory, 24(1), 137-152. https://doi.org/10.2308/aud.2005.24.1.137
  10. Lennox, C. S. (2005). Audit quality and executive officers' affiliations with CPA firms. The Accounting Review, 80(3), 661-681. https://doi.org/10.2308/accr.2005.80.3.661
  11. N. (2019). Auditor independence and audit quality: An analysis of recent literature. Journal of Accounting and Auditing: Research & Practice, 3(2), 102-115. https://doi.org/10.5430/jaarp.v3n2p102
  12. Palmrose, Z. V. (1986). Audit fees and auditor independence. Journal of Accounting Research, 24(Supplement), 97-110. https://doi.org/10.2307/2491087
  13. Patrick, L. (2017). Auditor independence and audit quality: A review of the literature. Journal of Business Finance & Accounting, 44(9-10), 1315-1344. https://doi.org/10.1111/jbfa.12265
  14. Puspitasari, S. (2019). Understanding auditor independence and audit quality: Insights from practitioners. Journal of Finance and Accounting, 7(4), 169-177. https://doi.org/10.5430/jfa.v7n4p169
  15. Saputra, R. (2015). Auditor independence and audit quality: Evidence from Indonesia. Asian Journal of Finance & Accounting, 7(2), 65-78. https://doi.org/10.5296/ajfa.v7i2.7600
  16. Simunic, D. A. (1984). Auditing, consulting, and auditor independence. Journal of Accounting Research, 22(Supplement), 679-702. https://doi.org/10.2307/2490786
  17. Suseno, B. (2013). The importance of auditor independence for audit quality: An empirical study. International Journal of Business, Humanities, and Technology, 3(5), 89-98. https://doi.org/10.1016/j.jcc.2014.01.004
  18. Yakubu, L. (2020). Auditor independence and audit quality: A qualitative exploration. Journal of Accounting, Auditing & Finance, 35(3), 411-434. https://doi.org/10.1177/0148558X20908121