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A Literature Review on the Auditor’s Independence Between Threats and Safeguards

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  • Andreea Claudia CRUCEAN

    (West University of Timișoara)

Abstract

The paper aims to identify the threats to the auditor’s independence and to discuss this subject from a theoretically point of view. Auditor independence is one of the seven principles of professional ethics, necessary to perform a fair and professional audit engagement. In this paper, I have reviewed the literature and analyzed some of the most relevant scientific articles that have researched this topic. For the case study, I chose to analyze the most relevant papers in this area taking into account the objective pursued by the author, the research methodology, the selected sample, the variables and the category of threats to auditor independence. Subsequently, were split the discovered threats into groups and identified a series of safeguards to limit the threats to the auditor’s independence. The main conclusion is that an in-depth knowledge, the exercise of the procedures for mitigating the effects of threats to the auditor’s independence and compliance with professional and ethical rules are factors that ensure the successful performance of an audit process.

Suggested Citation

  • Andreea Claudia CRUCEAN, 2020. "A Literature Review on the Auditor’s Independence Between Threats and Safeguards," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 1(7), pages 64-72, July.
    • Handle: RePEc:ahd:journl:v:1:y:2020:i:7:p:64-72
    DOI: 10.37945/cbr.2020.07.08
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    References listed on IDEAS

    as
    1. Legoria, Joseph & Rosa, Gina & Soileau, Jared S., 2017. "Audit quality across non-audit service fee benchmarks: Evidence from material weakness opinions," Research in Accounting Regulation, Elsevier, vol. 29(2), pages 97-108.
    2. Dogui Kouakou & Olivier Boiral & Yves Gendron, 2013. "ISO auditing and the construction of trust in auditor independence," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 26(8), pages 1279-1305, October.
    3. Emmanuel Austin & Siriyama Kanthi Herath, 2014. "Auditor independence: a review of literature," International Journal of Economics and Accounting, Inderscience Enterprises Ltd, vol. 5(1), pages 62-74.
    4. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    5. Jiang, Haiyan & Habib, Ahsan & Zhou, Donghua, 2015. "Accounting restatements and audit quality in China," Advances in accounting, Elsevier, vol. 31(1), pages 125-135.
    6. Jamel Azibi & Hubert Tondeur & Hamza Azibi, 2017. "The Impact of the H3C on Auditor Independence in French Context," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(2), pages 105-115, June.
    7. Chang, Yu-Shan & Chiang, Chia-Yu & Liu, Li-Lin (Sunny) & Xie, Xinmei (Lucy), 2019. "Audit partner independence and business affiliation: evidence from Taiwan," Advances in accounting, Elsevier, vol. 46(C), pages 1-1.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    auditor independence; ethics; threats; safeguards;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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