Effectiveness of new safeguards and prohibitions to protect audit independencean empirical research with auditors
- Begoña García-Hernández 1
- Antonio Duréndez 1
- Alfonso A. Rojo-Ramírez 2
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1
Universidad Politécnica de Cartagena
info
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2
Universidad de Almería
info
ISSN: 0210-2412
Any de publicació: 2023
Volum: 52
Número: 3
Pàgines: 317-347
Tipus: Article
Altres publicacions en: Revista española de financiación y contabilidad
Resum
The EU has faced the moral hazard problem of auditors by protecting their independence in two ways, with the formulation of a general principle of independence, and with the implementation of a preventive and sanctioning framework of safeguards and incompatibilities. The latest EU Directive, which reformed the auditing profession, adopted and extended such measures. This research fills a gap in the literature by showing the perception auditors have of the benefits of this new regulatory framework to promote auditor independence. With this purpose, we developed a qualitative study using a questionnaire addressed to a sample of 192 auditors. Following structural equation modelling methodology (SEM), we obtained results showing that the new and more restrictive European regulation of personal and service incompatibilities has a positive effect and improves the perceived independence of auditors.
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