Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Auditor iIndependence and the expectations gap
T2 - some evidence of changing user perceptions
AU - Beattie, Vivien
AU - Brandt, Richard
AU - Fearnley, Stella
PY - 1998
Y1 - 1998
N2 - The audit function is an essential part of the regulatory structure which supports the integrity of our capital markets. There is a recognised expectations gap which surrounds the audit function, as many users of audited financial statements have different expectations of the audit function from what it delivers. Perceptions of auditor independence are a fundamental part of this expectations gap. In the light of recent significant changes to the regulatory framework, this paper reports a survey of leading financial journalists, to ascertain their current views on auditor independence. Findings show a belief that some of the changes have reduced the expectations gap although problems still exist in the area of non-audit services. However, the most significant threat to independence is seen to be the economic and personal pressure on the partner as an individual, an area difficult to regulate. The challenge for audit firms is to demonstrate how well they control for this within their management structures.
AB - The audit function is an essential part of the regulatory structure which supports the integrity of our capital markets. There is a recognised expectations gap which surrounds the audit function, as many users of audited financial statements have different expectations of the audit function from what it delivers. Perceptions of auditor independence are a fundamental part of this expectations gap. In the light of recent significant changes to the regulatory framework, this paper reports a survey of leading financial journalists, to ascertain their current views on auditor independence. Findings show a belief that some of the changes have reduced the expectations gap although problems still exist in the area of non-audit services. However, the most significant threat to independence is seen to be the economic and personal pressure on the partner as an individual, an area difficult to regulate. The challenge for audit firms is to demonstrate how well they control for this within their management structures.
U2 - 10.1108/eb024966
DO - 10.1108/eb024966
M3 - Journal article
VL - 6
SP - 159
EP - 170
JO - Journal of Financial Regulation and Compliance
JF - Journal of Financial Regulation and Compliance
SN - 1358-1988
IS - 2
ER -