Auditor Independence And Its Influence On Accounting Behavior: A Systematic Literature Review

Abstract

This paper provides a comprehensive analysis of auditor independence and its impact on accounting behavior. The research framework focuses on four main threats to auditor independence: client importance, non-audit services, auditor tenure, and client affiliation with CPA firms. The study utilizes Google Scholar as the database source and Harzing's Publish and Perish as the data search application to identify and analyze 50 relevant articles published between 2013 and 2023 in the field of auditor independence and its influence on accounting behavior. The research findings highlight the potential risks and implications of these threats on auditor independence, including financial dependence, familiarity, self-interest, and reduced skepticism. Mitigating strategies such as regulatory oversight, ethical guidelines, transparency, rotation of audit firms or engagement teams, and professional skepticism are discussed to address these threats and uphold auditor independence. The conclusions emphasize the importance of ongoing monitoring, evaluation, and improvement of audit quality to ensure the effectiveness of independence safeguards. This research contributes to a better understanding of the complex relationship between auditor independence and accounting behavior, providing valuable insights for regulators, auditing firms, and researchers in promoting the integrity of financial reporting and strengthening confidence in the auditing profession.