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Review of Post-CLERP 9 Australian auditor independence research

journal contribution
posted on 2014-12-01, 00:00 authored by Peter CareyPeter Carey, Gary S Monroe, Greg Shailer
The Corporate Law Economic Reform Program (Audit Reform & Corporate Disclosure) Act 2004 (CLERP 9) added substantial new provisions pertaining to auditor independence, and followed in the wake of financial reporting scandals during 2000 to 2003. Many of the regulatory changes were framed in the earlier Ramsay Report, which drew on independence concerns raised in the academic literature. This review paper reviews Australian academic research investigating auditor independence, framed by our conceptual understanding of auditor independence, to assess what we have learned about the impact of CLERP 9 on auditor independence. Our review of Australian auditor independence research published post-CLERP 9 reveals little evidence of the impact of the regulatory changes on auditor behaviour (independence in fact) and perceptions (independence in appearance). We conclude there are substantial needs for further research on the impact of the CLERP 9 amendments on auditor independence and any enduring independence issues. We identify particular areas for future research that may better inform policy development and argue that the prospect of high-quality relevant research will increase if regulatory agencies, the accounting profession and audit practitioners engage more with academics in the research process. We identify several ways in which this might occur.

History

Journal

Australian accounting review

Volume

24

Pagination

370-380

Location

London, Eng.

ISSN

1035-6908

Language

English

Publication classification

C Journal article, C1 Refereed article in a scholarly journal

Issue

4

Publisher

Wiley