Antecedents and Consequences of Independence Risk: Framework for Analysis
- Topics:
- Revenue recognition
- Tags:
- Analysis,
- Sales,
- Independence,
- Incentive,
- Financial Accounting,
- Finance,
- Corporate Law,
- Corporate Governance,
- Business Operations,
- Audit,
- ...
- Source:
- American Accounting Association
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Overview: This paper presents a framework that explains how certain incentives affecting independence risk interact with situational factors to affect actual or perceived audit quality. It articulates the combined effects of direct incentives, indirect incentives, and judgment-based decisions involving difficult accounting issues, materiality, and audit conduct. It then identifies a variety of factors that may mitigate independence risk, including corporate governance mechanisms, regulatory oversight, auditing firm policies, auditing firm culture, and individual auditor characteristics.
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Format: PDF | Size: 58KB | Date: Mar 2001 | Pages: 18
