Dimensions of pressures faced by auditors and its impact on auditors’ independence: A comparative study of the USA and Australia

Managerial Auditing Journal

Volumn 19, Issue 1, 2004, Pages 99-116

  Umar, Ahson ^a   Anandarajan, Asokan ^b  

^a Yell PLC   (United Kingdom)

^b NEW JERSEY INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Auditors; Australia; Independent experts; Regulation; Stress; USA

Indexed keywords

EID: 84993008455     PISSN: 02686902     EISSN: None     Source Type: Journal    
DOI: 10.1108/02686900410509848     Document Type: Article

References (46)

1. AICPA (1998a), Professional Standards, Objectivity and Independence, ET Section 55.01 Vol. 2, American Institute of Certified Public Accountants, New York, NY.
2. AICPA (1998b), Professional Standards, Integrity and Objectivity, ET Section 102.01, Vol. 2, American Institute of Certified Public Accountants, New York, NY.
3. Ashbaugh, H., LaFond, R. and Mayhew, B.W. (2003), “ Do nonaudit services compromise auditor independence? Further evidence ”, The Accounting Review, Vol. 78, pp. 611-640.
4. Bazerman, M., Morgan, K. and Loewenstein, G. (1997), “ The impossibility of auditor independence ”, Sloan Management Review, No. Summer, pp. 89-94.
5. Calegari, M.J., Schatzberg, J.W. and Sevcik, G.R. (1998), “ Experimental evidence of differential auditor pricing and reporting strategies ”, The Accounting Review, Vol. 73, pp. 255-276.
6. Cattell, R.B. (1973), Personality and Mood by Questionnaire, Jossey-Bass Publishers, Washington, DC.
7. Clarke, F.L., Dean, G.W. and Oliver, K.G. (1997), Corporate Collapse: Regulatory, Accounting and Ethical Failure, Cambridge University Press, Melbourne.
8. Clikeman, P.M. (1998), “ Auditor independence: continuing controversy ”, Ohio CPA Journal, Vol. 57 No. 2, pp. 40-43.
9. Cockburn, D.J. (1992), “ Servant of three masters (Auditors) ”, CA Magazine, Vol. 9 No. 125, pp. 37-39.
10. Cook, E. and Kelley, T. (1998), “ Auditor stress and time budgets ”, CPA Journal, Vol. 58 No. 7, pp. 83-86.
11. Cousins, J., Mitchell, A., Sikka, P. and Willmott, H. (1998), Auditors: Holding the Public to Ransom, Association for Accountancy and Business Affairs, Basildon.
12. DeAngelo, L. (1981), “ Auditor independence, low-balling and disclosure regulation ”, Journal of Accounting and Economics, August, pp. 113-127.
13. DeFond, M., Raghunandan, K. and Subramanyam, K. (2002), “ Do non-audit service fees impair auditor independence? Evidence from going concern audit opinions ”, Journal of Accounting Research, Vol. 20, September, pp. 1247-74.
14. Dhaliwal, D.S., Schatzberg, J.W. and Trombley, M. (1993), “ An analysis of the economic factors related to auditor-client disagreements preceding auditor changes ”, Auditing: A Journal of Theory and Practice, Vol. 12 No. 2, pp. 22-39.
15. Farmer, T.A., Rittenberg, L.E. and Trompeter, G.M. (1987), “ An Investigation of the Impact of Economic and Organizational Factors on Auditor Independence ”, Auditing: A Journal of Practice & Theory, Vol. 7 No. Fall, pp. 1-14.
16. Frankel, R., Johnson, M. and Nelson, K. (2002), “ The relation between auditor's fees for nonaudit services and earnings quality ”, The Accounting Review, Vol. 77, pp. 71-105, Supplement.
17. Gail, M. (1970), “ An examination of a procedure for determining personality correlates to independence of judgement in male university student ”, PhD Dissertation, Northwestern University, Evanston/Chicago, UL.
18. GAO (1996), Accounting Profession-Major Issues: Progress and Concerns, US General Accounting Office, Washington, DC.
19. Goldman, A. and Barlev, B. (1974), “ The auditor firm conflict of interest: its implications for independence ”, The Accounting Review, Vol. 4, October, pp. 707-718.
20. Graeme, W. (1994), “ Auditor independence, audit qualifications and the provision of non-audit services: a note ”, Accounting and Finance, Vol. 34 No. 1, pp. 75-87.
21. Gul, F.A. (1989), “ Bankers’ perceptions of factors affecting auditor independence ”, Accounting, Auditing & Accountability Journal, Vol. 2 No. 3, pp. 40-51.
22. Hendrickson, H. (1998), “ Relevant financial reporting questions not asked by the accounting profession ”, Critical Perspectives on Accounting, Vol. 5 No. 9, pp. 489-506.
23. Hodge, F. (2003), “ Investors’ perceptions of earnings quality, auditor independence, and financial information ”, Accounting Horizons, Vol. 17, Supplement, pp. 37-48.
24. Hofstede, G. (1991), Culture's Consequences: International Differences in Work-related Values, Sage Publications, Newbury Park, CA.
25. Johnson, V.E. and Kaplan, S.E. (1991), “ Experimental evidence on the effects of accountability on auditor judgements ”, Auditing: A Journal of Practice and Theory, Vol. 10, Supplement, pp. 96-107.
26. Kist, L.E. (1974), “ Discussant's response to auditor independence: its historical development and some proposals for research ”, Proceedings of the 1974 Arthur Andersen University of Kansas Symposium on Auditing Problems.
27. Knapp, M.C. (1985), “ Audit conflict: an empirical study of the perceived ability of auditors to resist management pressure ”, The Accounting Review, Vol. 60 April, pp. 202-211.
28. Lord, A.T. (1992), “ Pressure: a methodological consideration for behavioral research in auditing ”, Auditing: A Journal of Practice and Theory, Vol. 11 No. 2, pp. 89-108.
29. Marsh, C. (1982), The Survey Method: the Contribution of Surveys to Sociological Explanation, George Allen and Unwin, London.
30. Nichols, D.R. and Price, K.H. (1976), “ The auditor-firm conflict: an analysis using concepts of exchange theory ”, The Accounting Review, Vol. 51, April, pp. 335-346.
31. O'Leary, C. (1998), “ Audit firms beyond 2000: new strategies or new markets? ”, Accountancy, October, pp. 18-20.
32. Pasewark, W.R., Shockley, R.A. and Wilkerson, J.E. (1992), “ Do senior auditors experience difficulty with personal objectivity when making enquiries of client employees? ”, Ohio CPA Journal, Vol. 51 No. 2, pp. 14-19.
33. Raghunathan, B. (1991), “ Premature signing-off of audit procedures: an analysis ”, Accounting Horizons, Vol. 5 No. 2, pp. 71-79.
34. Sack, R.J. and Tangreti, R. (1987), “ ESM: implications for the profession ”, Journal of Accountancy, Vol. 164, April, p. 100.
35. Schelluch, P. and Thorpe, S. (1995), Perception of auditor independence, Perspectives on Contemporary Auditing, Australian Society of Certified Practicing Accountants, Melbourne.
36. SEC (1970), Accounting Series Release No 37, US Securities and Exchange Commission, US Government Printing Office, Washington, DC.
37. SEC (1994), Staff Report on Auditor Independence, Office of the Chief Accountant, US Securities and Exchange Commission, US Government Printing Office, Washington, DC.
38. Shockley, R.A. (1981), “ Perceptions of auditor independence: an empirical analysis ”, The Accounting Review, Vol. 56 October, pp. 785-800.
39. Tsui, J. and Gul, F.A. (1996), “ Auditors’ behavior in an audit conflict situation, A note on the locus of control and ethical reasoning ”, Accounting, Organisation and Society, Vol. 21 No. 1, pp. 41-51.
40. Walker, R.H. (1999), “ director of enforcement addresses the importance of being independent auditor: the issues ”, The CPA Journal, Vol. 69 No. 5, pp. 44-50.
41. Willett, C. and Page, M. (1996), “ A survey of time budget pressure and irregular auditing practices among newly qualified UK chartered accountants ”, British Accounting Review, Vol. 28 No. 2, pp. 101-120.
42. AICPA (1986), “Statement on auditing standards”, Reports on the Application of Accounting Principles, American Institute of Certified Public Accountants, New York, NY.
43. Auditing and Assurance Standards Board (1992), “ Statement of Auditing Practice AUP 32 ”, Audit Independence.
44. Australian Commonwealth Government (1996), “ Review of the requirements for the registration and regulation of auditors ”, draft report.
45. Coakes, S.J. and Steed, L.G. (1997), SPSS: Analysis Without Anguish, Jacaranda Wiley Ltd., Milton, Australia.
46. Institute of Chartered Accountants of New Zealand (1996), “Advisory engagement standard No. 1”, Opinions of Accounting and Reporting Matters, ICANZ, Wellington.