The development of auditor independence dimensions: Nigerian stakeholders’ perspective

• Auteur principal: Tahir, Fatima Alfa
• Format: Thèse
• Langue: anglais; anglais
• Publié: 2015
• Sujets: HF5601-5689 Accounting
• Accès en ligne: https://etd.uum.edu.my/4899/1/s93668.pdf; https://etd.uum.edu.my/4899/2/s93668_abstract.pdf

Past studies on auditor independence (AI) generally focused on factors influencing AI by examining individual or group of factors posited to impact AI using various proxies of AI. Since regulatory frameworks define AI along two dimensions (fact and appearance), the use of proxies such as non-audit fees ratio, audit to total fees ratio or client importance is insufficient, because of their inability to capture both dimensions of AI. The study investigated the concept of AI and developed a measure for AI based on Nigerian stakeholders’ perceptions. The first phase investigated the constituents of AI and how they interdependently measure AI. Data was collected from 233 stakeholders comprising practising accountants, bank loan officers, members of the corporate governance body, Financial Reporting Council officers, officers of the Federal Inland Revenue Service and shareholders, using disproportionate stratified sampling. Results from exploratory and confirmatory factor analysis showed that the AI measure consisted of nine constructs (perceived objectivity, perceived integrity, perceived professional skepticism, self-interest threat avoidance, selfreview threat avoidance, familiarity threat avoidance, intimidation threat avoidance, advocacy threat avoidance and safeguards implementation). The second phase examined the applicability of the measure among financial directors of listed companies. Data collected from 62 financial directors of listed companies in Lagos was analyzed using Partial Least Squares Structural Equation Modelling. Results showed that the measure was valid, reliable and applicable in Nigeria. The study contributes to by proposing and operationalizing a holistic measure for AI. It also confirms the existence of a hierarchical model explaining AI in terms of its two dimensions. (Indpendence in fact and appearance) as measured by nine constructs. The study contributes theoretically, methodologically and practically to the body of knowledge and has implications to regulators, auditors and other researchers. It will benefit regulatory and professional bodies in assessing and structuring auditor independence standards, provides an assessment tool for auditors and an avenue for further research for academics.