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UK investors’ perceptions of auditor independence

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  • Dart, Eleanor

Abstract

The auditor’s role in society is that of validating the truth and fairness of financial statements. If owners of organisations doubt the auditor’s independence, financial statements will lack credibility. This questionnaire-based study investigated how investors perceive three potentially independence-impairing auditor–client relationships: the joint provision of audit and non-audit services, an audit firm’s economic dependence upon a client and long-term relationships between auditor and client. The objective was to determine whether, after a series of high-profile corporate collapses, owners retain faith in the integrity of the auditor. The results suggest that economic dependence and the provision of non-audit services are perceived as greater threats to auditor independence than long-term relationships between the auditor and client.

Suggested Citation

  • Dart, Eleanor, 2011. "UK investors’ perceptions of auditor independence," The British Accounting Review, Elsevier, vol. 43(3), pages 173-185.
    • Handle: RePEc:eee:bracre:v:43:y:2011:i:3:p:173-185
    DOI: 10.1016/j.bar.2011.06.003
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    References listed on IDEAS

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    Cited by:

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    2. Maroun, Warren & Atkins, Jill, 2014. "Section 45 of the Auditing Profession Act: Blowing the whistle for audit quality?," The British Accounting Review, Elsevier, vol. 46(3), pages 248-263.
    3. Ayesha Hameed & Mazhar Ali Alyani & Muhammad Sijawal Alyani & Ghulam Hussain & Abdul Manan Channa, 2024. "Various Factor Affecting External and Internal Auditor Performance: Analytical Perspectives of Employees Working in Karachi Audit Firm and Companies," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 848-856.
    4. Amos Adejare Aderibigbe & Ibukun Olalekan Fadairo & Fasilat Iyabode Adepeju Balogun, 2024. "Auditor Independence and Financial Integrity in Nigeria: An Analysis of Challenges and Implications," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 411-426, November.

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