Jul 2026· Journal of Creative Power and Ambition (JCPA)· 0 citations· 47 references
Abstract
Auditor independence is a fundamental pillar of corporate governance that safeguards the quality of financial reporting and mitigates the risk of reporting manipulation. This study aims to map the latest empirical evidence on the influence of auditor independence on corporate accounting behavior. Adopting a Systematic Literature Review approach guided by the PRISMA reporting framework, this study thoroughly examines 30 reputable scientific articles indexed in the Scopus database, published within the last five years (2021–2026). The search strategy employed the keywords 'auditor independence', 'accounting behavior', 'earnings management', and 'reporting quality' combined with Boolean operators. The main findings indicate that the relationship between auditor independence and accounting behavior is complex; independence does not exert a single linear effect but is strongly shaped by critical mediating and moderating variables, including audit tenure, audit fees, client pressure, firm ethical culture, and auditor gender diversity. This synthesis reveals patterns of consensus and theoretical debate regarding the effectiveness of oversight mechanisms. The article contributes theoretically by enriching the discourse on audit ethics and offers practical guidance for regulators in formulating more adaptive supervisory policies, as well as serving as a strategic reference for auditors seeking to enhance professionalism and objectivity amid the complexities of modern business.
This study aims to examine the influence of Professional Audit Standards and Auditor Independence on Government Financial Audit Quality within a Regional Government Inspectorate in Indonesia. Employing a quantitative approach, data were collected through a structured questionnaire distributed to 30 auditees selected via purposive sampling. Multiple linear regression analysis was used to test the hypotheses. The results indicate that Professional Audit Standards have a positive but statistically insignificant effect on Audit Quality. In contrast, Auditor Independence has a positive and significant effect on Audit Quality. Furthermore, both variables jointly exert a significant influence on Audit Quality, explaining 44.2% of its variance. The findings highlight that while formal compliance with professional standards is necessary, auditor independence plays a more critical role in ensuring objective and high-quality audit outcomes. The study recommends that the Regional Government Inspectorate continuously strengthen the implementation of professional standards through regular training and enhance auditor independence by mitigating conflicts of interest and external pressures.
Yasser, Agusmadi, Marzuki et al.· Review of Business and Accou...· 0 citations
Audit quality is a crucial element in maintaining public trust in financial reporting and ensuring the credibility of information used by stakeholders in economic decision-making. However, several audit failures have demonstrated that audit quality remains a significant challenge, particularly when auditors encounter threats to professional judgment, independence, accountability, and objectivity. This study aims to examine and synthesize previous research findings regarding the roles of auditor independence, accountability, and objectivity in improving audit quality within the public accounting profession in Indonesia. This research employed a Systematic Literature Review (SLR) method by analyzing relevant scientific publications obtained from databases, including Google Scholar, Garuda, and SINTA. The selected articles were evaluated based on predetermined inclusion criteria and analyzed using qualitative content analysis to identify research patterns, relationships among variables, and research gaps. The findings indicate that auditor independence is a fundamental factor influencing audit quality because it enables auditors to provide impartial judgments without external pressure or conflicts of interest. Furthermore, accountability encourages auditors to conduct audit procedures carefully and responsibly, while objectivity ensures fairness and neutrality in evaluating audit evidence. The discussion highlights that these three professional attributes complement one another in strengthening audit credibility and stakeholder confidence. This study concludes that improving audit quality requires continuous efforts from auditors, Public Accounting Firms (PAFs), regulators, and professional organizations through ethical enforcement, effective quality control systems, competency development, and the strengthening of professional standards.
Allya Nathalie Radina S, Ardiansyah Ardiansyah· Journal of social research· 0 citations
This study examined the effect of auditor independence on the financial reporting quality and financial performance of quoted deposit money banks in Nigeria over the period 2010 to 2024. Two concerns motivated the enquiry. The first is that recurring banking crises and financial misstatements in Nigeria have raised persistent questions about whether the external audit function genuinely safeguards the credibility of published financial statements. The second is that the empirical literature has generally examined auditor independence, reporting quality and financial performance in isolation rather than testing whether reporting quality mediates the independence–performance relationship. Anchored on Agency Theory and Information Asymmetry Theory, the study pursued two objectives: to examine the effect of auditor independence on financial reporting quality, and to determine its effect on financial performance with reporting quality tested as a mediating channel. Four regression models operationalised these objectives. Auditor independence was proxied by audit fees, audit tenure and audit firm size; financial reporting quality was measured using discretionary accruals from the Modified Jones Model; and financial performance was measured using return on assets and return on equity. All thirteen listed deposit money banks were observed over fifteen years, yielding a balanced panel of 195 bank-year observations drawn from audited annual reports. Data were analysed using descriptive statistics, Pearson correlation and panel regression, with the Hausman test used to select between the fixed and random effects estimators. On the first objective, audit fees and Big Four membership significantly reduced discretionary accruals while audit tenure significantly increased them, establishing that auditor independence affects reporting quality. On the second objective, auditor independence significantly affected both return on assets and return on equity; when financial reporting quality was introduced into the performance equation, the effect of audit tenure on performance disappeared and the audit fee coefficient declined, establishing financial reporting quality as a mediating channel. The combined model accounted for 74.8 per cent of the variation in return on assets and 68.3 per cent of the variation in return on equity. The study concludes that auditor independence influences financial performance both directly and indirectly through its effect on reporting quality, and recommends that regulators enforce mandatory audit firm rotation, that banks ensure audit fees adequately reflect engagement scope, and that investors treat audit quality indicators as material signals of bank credibility.
Olusola Olayinka Afolabi, M. Oke· International journal of res...· 0 citations
Audit failures, regulatory gaps, and the erosion of public trust in financial reporting have
raised global concerns about the effectiveness of audit oversight. This study investigates the
effect of audit regulatory frameworks on corporate reporting quality, using Nigeria as a
contextual anchor among emerging markets. It draws on global standards, theoretical models,
and empirical findings to explore the conceptual foundations, international perspectives,
practical challenges, and policy implications of audit regulation in enhancing auditor
independence, professional competence, and financial statement credibility. The findings
reveal that while regulatory frameworks have improved audit transparency and internal
governance in several economies, their effectiveness remains limited in regulatory authorities
with weak enforcement capacity. The study concludes that audit regulation must be globally
benchmarked yet locally responsive, emphasizing risk-based supervision, auditor competence,
and proactive oversight. It recommends empowering national regulatory institutions such as
the Financial Reporting Council of Nigeria (FRCN), adopting AI-enabled audit systems,
mandating firm rotation, and enforcing sanctions for non-compliance. These measures are
essential for strengthening audit reliability, improving disclosure quality, and rebuilding
stakeholder trust across diverse economic settings
Patrick Edet Akinninyi (PhD)· Journal of Accounting and Fi...· 1 citation
This study systematically reviews scholarly literature on Supreme Audit Institutions (SAIs) published between 2015 and 2025. It aims to synthesise existing evidence, trace the evolution of research themes, examine theoretical foundations, identify persistent gaps, and assess how SAIs contribute to economic development through their roles in enhancing fiscal discipline, reducing corruption, and strengthening public accountability. The study employed a structured systematic literature review (SLR) design, utilising the Systematic Quantitative Assessment Technique (SQAT) developed by Pickering and Byrne (2014). A comprehensive search was conducted across five peer- reviewed databases — Elsevier, Emerald, Routledge, Sage, and Springer — using "Supreme Audit Institution" as the key search term. A total of 159 records were initially identified; after deduplication and eligibility screening, 105 studies met the inclusion criteria and were included in the analysis. The review reveals a progressive evolution in research themes, from compliance auditing and budget control (2015–2016) to performance auditing and ethics (2017–2019), digital auditing and ISSAI standards (2020–2022), and, most recently, to Sustainable Development Goals (SDGs) alignment, citizen participation, and artificial intelligence (2023–2025). Publication output peaked in 2025 with 19 articles, reflecting growing scholarly interest in SAI's societal impact. Methodologically, 67% of studies relied on secondary data, while 53% employed qualitative analysis. Agency theory emerged as the most frequently applied theoretical framework, though a significant number of publications (55) lacked explicit theoretical grounding. Findings confirm that effective SAIs are associated with improved fiscal outcomes, reduced audit failures, and stronger governance environments that are conducive to economic development, particularly in transitional and developing economies. This review provides the first systematic synthesis of SAI literature spanning eleven years with attention to both global trends and African governance contexts. It identifies critical research gaps, particularly the underrepresentation of North American, South American, and Australasian perspectives, the need for more primary data collection, and the imperative for stronger theoretical development in future SAI research.
I. Mustapha· Buhalterinės apskaitos teori...· 0 citations
The relevance of external auditors’ recommendations is crucial for promoting transparency, accountability and effective governance in public sector entities. However, limited implementation of audit recommendations globally and in Africa, including Tanzania, raises concerns about their practical usefulness and decision-making value. This study investigates the effect of external auditors’ perceived independence on the relevance of audit recommendations in Tanzanian Local Government Authorities (LGAs). Guided by Agency Theory, the study adopts a positivist research philosophy, employing a quantitative approach and Structural Equation Modeling (SEM) to analyse survey data from 345 audit and governance stakeholders across 126 sampled LGAs. Descriptive analysis indicated that respondents recognised auditors’ perceived independence particularly freedom from managerial interference, operational autonomy, access to information and adequate logistical support as critical for relevant recommendations. Regression results revealed a positive and statistically significant relationship between auditors’ perceived independence and relevance of audit recommendations (P<.001, F=34.860, t=5.904, β=.304 and Adjusted R-square =9%) and confirms that perceived independence has the modest explanatory power on the relevance of audit recommendations. The findings show the importance of institutional and regulatory frameworks that safeguard auditors perceived independence, while highlighting that perceived independence alone is insufficient without management responsiveness and effective follow-up mechanisms. By focusing on auditor’s perceived independence as a determinant of relevance of audit recommendations, this study fills both theoretical and empirical gaps in public sector auditing literature, providing actionable insights for improving audit relevance and governance in Tanzanian LGAs.
Lenatusi L. Munyangabi, Henry Chalu, Sarah Ngomuo· Journal of Science, Innovati...· 0 citations
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