摘要：There has been much public, professional, regulatory and scholarly concern about auditor independence in recent times. This is because of the high incidence of corporate collapses and the role of the auditor as a watchdog. Although auditor independence depends on both fact and appearances, researchers and regulators focus on examining appearances of independence because of the inability to observe the auditors state of mind. These perceptions inform the confidence reposed on financial statements and consequently, efficiency of capital markets. Inconsistencies in measuring auditor independence by using diverse proxies have resulted in conflicting findings in evaluating the constituents of auditor independence. This paper proposes that auditor independence as defined by fact and appearances can and should be measured by regulatory and informed stakeholders in order to determine the confidence to be reposed on financial reports and audit quality. This can be achieved by assessing user perceptions and developing a perceived auditor independence rating (PAI) index based on identified constituents. The paper also proposes that the acceptability of the rating index to stakeholders can be evaluated to assess how stakeholders rate auditors’ independence. Nine propositions are made to support and examine the proposed framework.
关键词：Independence of mind; Independence in appearance; Objectivity; Integrity; Professional skepticism
