Enhancing perceptions of auditor independence
Journal of Business Ethics · 1985 · Volume 4 · Issue 1
Abstract
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.
Keywords
Economic Growth, Educational Program, Management Control, Financial Statement User, Audit Committee
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