Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts

Omri Mohamed Ali; Akrimi Nesrine

doi:doi:10.11648/j.jfa.20150303.12

| Peer-Reviewed

Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts

Omri Mohamed Ali, Akrimi Nesrine

Published in Journal of Finance and Accounting (Volume 3, Issue 3)

Received: 5 April 2015 Accepted: 20 April 2015 Published: 9 May 2015

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The purpose of this paper is to explore the perceptions of Tunisian financial analysts regarding factors influencing auditor independence. Our study examines the impact of 49 independence enhancing and threatening factors on the perceptions of 54 financial analysts using a questionnaire instrument. The results indicate that the principal threat factors relate to non audit services provision by the incumbent auditor and the existence of personal and financial relationships. The principal enhancement factor is the positive reputation. Exploratory factor analysis reduces the factors to a small number of dimensions. The most important dimension identified is the economic dependence and existence of personal and financial relationships.

Published in	Journal of Finance and Accounting (Volume 3, Issue 3)
DOI	10.11648/j.jfa.20150303.12
Page(s)	42-49
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Auditor Independence, Financial Analysts, Factors, Perceptions

References

[1]	Abu Bakar, N., & Ahmad, M., (2009) “Auditor independence: Malaysian accountants perceptions” , International journal of business and management, vol.4, N°12, pp.129-141.
[2]	Abu Bakar, N., Abdul Rahman, A., & Abdul Rashid, H., (2005), “Factors influencing auditor independence: Malaysian loan officers’ perceptions”, Managerial Auditing Journal, vol 20, pp,804-822.
[3]	Adeyemi, S.B., &Olowookere, J, K., (2012), “Non audit services and auditor independence”, Business and Management Review, vol.2, N°5, pp.89-97.
[4]	Al-Ajmi, J., &Saudagaran, S., (2011), “Perceptions of auditors and financial statements users regarding auditor independence in Bahrain” , Managerial Accounting Journal, vol.26,N°2,pp.130-160
[5]	Alleyne,P.A., Devonish, D., &Alleyne, P., (2006), “ Perceptions of auditors independence in Barbados”, Managerial Accounting Journal, vol.21, N°6, pp.621-635.
[6]	Al Sawalqa, F., Qtish, A., (2012), “ Jordanian shareholders’ perception of external auditor independence”, Interdisciplinary Journal of Comtemporary Research in Business, vol.4,N°2,pp.626-633.
[7]	Beattie,V., Brandt,R., &Fearneley,A., (1999), “ Perceptions of auditor independence : U.K Evidence”, Journal of International Accounting, Auditing and taxation, vol.8, N°1, 67-107.
[8]	Bell T., Landsman W.R., & Shackelford, D. A., (2001), “Auditors’ Perceived Business Risk and Audit Fees: Analysis and Evidence”, Journal of Accounting Research, vol.39, pp.35-43.
[9]	Blokdijk,H., Drieenhuizen, F., Simunic,D.A., &Stein,M., (2006), “An analysis of cross-sectional differences in Big and Non Big public accounting firms audit programs”, Auditing : A journal of practice & theory, vol.25, pp.27-48.
[10]	Ben Saad, E., Lesage, C. (2008). “Auditor's independence: What does really matter? A proposalfor an independence system”. European Accounting Association, Rotterdam, Netherland
[11]	Chan,P., Ezzamel,M., &Gwilliam, D., (1993), “ Determinants of audit fees for quoted UK companies”, Journal of Business Finance & Accounting”, vol.20, N°6, pp.765-786.
[12]	Daniels, B.W., Booker, Q., (2011), “The effects of audit firm rotation on perceived auditor independence and audit quality”, Research in Accounting Regulation, vol.23, pp.78-82.
[13]	Dart, E., (2011), “UK investors’ perceptions of auditor independence”, The British Accounting Review, vol.43, N°3, pp.173-185.
[14]	Gay, G. and Simnett, R. (2003), “Auditing & Assurance Services in Australia”, 2nd ed., McGraw-Hill Book Australia Pty., Sydney.
[15]	Goldman, A., &Barlev, B., (1974), « The Auditor-Firm Conflit of Interests: Its Implications for Independance», The Accounting Review, vol. 49, N°4, pp.707-718
[16]	Ghosh, A.,& Moon, D., (2005), “Auditor Tenure and Perceptions of Audit Quality”, The Accounting review, vol.80, N°2, pp. 585- 612.
[17]	Hamuda,K., &Sawan, N., (2014), “Perceptions of auditor independence in Libyan Audit Market”, International Business Research, vol.7, N°2,pp.120-128.
[18]	Jensen, W., &Meckling., (1976), “ Theory of the firm: managerial behavior, agency cost and ownership structure”, Journal of financial Economics, vol.3, pp.305-360.
[19]	Jeong, S. W., Jung K., & Lee S.J., (2005), “The effect of mandatory auditor assignment and non audit service on audit fees: Evidence from Korea”, International Journal of Accounting, vol. 40, N°3, pp. 233-248.
[20]	Matsumura, E.M., & Tucker, R.R., (1995), “Second Partner Review: An Analytical model”, Journal of Accounting Auditing and Finance, pp. 173-200.
[21]	PratDit-Hauret, C., (2003), “ L’indépendanceperçue de l’auditeur”, Revue Française de Gestion, vol.29, N°147, pp. 105-117.
[22]	Salehi,M., Mansoury,A., &Azari,Z., (2009), “Audit Independence and Expectation Gap: Empirical Evidences from Iran”, International Journal of Economics and Finance, vol.1, N°1, pp.165-174.
[23]	Wang,X., Davidson,W.,&Hongxia,W., (2010), “The Sarbanes- Oxley Act and CEO tenure, turnover, and risk aversion”. The quarterly review of economics and finance, vol .50, pp. 367-376.
[24]	Watts,R.L., & Zimmerman, J.L., ( 1983), “ Agency problems, Auditing and the theory of the firm: some evidence”, Journal of Law and Economics, vol.5, N°3, pp.305-329.

Cite This Article

Plain Text BibTeX RIS

APA Style

Omri Mohamed Ali, Akrimi Nesrine. (2015). Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts. Journal of Finance and Accounting, 3(3), 42-49. https://doi.org/10.11648/j.jfa.20150303.12

Copy | Download

ACS Style

Omri Mohamed Ali; Akrimi Nesrine. Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts. J. Finance Account. 2015, 3(3), 42-49. doi: 10.11648/j.jfa.20150303.12

Copy | Download

AMA Style

Omri Mohamed Ali, Akrimi Nesrine. Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts. J Finance Account. 2015;3(3):42-49. doi: 10.11648/j.jfa.20150303.12

Copy | Download

@article{10.11648/j.jfa.20150303.12,
  author = {Omri Mohamed Ali and Akrimi Nesrine},
  title = {Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts},
  journal = {Journal of Finance and Accounting},
  volume = {3},
  number = {3},
  pages = {42-49},
  doi = {10.11648/j.jfa.20150303.12},
  url = {https://doi.org/10.11648/j.jfa.20150303.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20150303.12},
  abstract = {The purpose of this paper is to explore the perceptions of Tunisian financial analysts regarding factors influencing auditor independence. Our study examines the impact of 49 independence enhancing and threatening factors on the perceptions of 54 financial analysts using a questionnaire instrument. The results indicate that the principal threat factors relate to non audit services provision by the incumbent auditor and the existence of personal and financial relationships. The principal enhancement factor is the positive reputation. Exploratory factor analysis reduces the factors to a small number of dimensions. The most important dimension identified is the economic dependence and existence of personal and financial relationships.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts
AU  - Omri Mohamed Ali
AU  - Akrimi Nesrine
Y1  - 2015/05/09
PY  - 2015
N1  - https://doi.org/10.11648/j.jfa.20150303.12
DO  - 10.11648/j.jfa.20150303.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 42
EP  - 49
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20150303.12
AB  - The purpose of this paper is to explore the perceptions of Tunisian financial analysts regarding factors influencing auditor independence. Our study examines the impact of 49 independence enhancing and threatening factors on the perceptions of 54 financial analysts using a questionnaire instrument. The results indicate that the principal threat factors relate to non audit services provision by the incumbent auditor and the existence of personal and financial relationships. The principal enhancement factor is the positive reputation. Exploratory factor analysis reduces the factors to a small number of dimensions. The most important dimension identified is the economic dependence and existence of personal and financial relationships.
VL  - 3
IS  - 3
ER  -

Copy | Download

Author Information

Omri Mohamed Ali

Accounting Department at College of Business Administration- Northern Border University-Arar, Saudi Arabia
Akrimi Nesrine

Faculty of Economics and Management Sciences - Tunis El Manar University-Tunis, Tunisia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Omri Mohamed Ali, Akrimi Nesrine. (2015). Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts. Journal of Finance and Accounting, 3(3), 42-49. https://doi.org/10.11648/j.jfa.20150303.12

Copy | Download

ACS Style

Omri Mohamed Ali; Akrimi Nesrine. Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts. J. Finance Account. 2015, 3(3), 42-49. doi: 10.11648/j.jfa.20150303.12

Copy | Download

AMA Style

Omri Mohamed Ali, Akrimi Nesrine. Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts. J Finance Account. 2015;3(3):42-49. doi: 10.11648/j.jfa.20150303.12

Copy | Download

@article{10.11648/j.jfa.20150303.12,
  author = {Omri Mohamed Ali and Akrimi Nesrine},
  title = {Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts},
  journal = {Journal of Finance and Accounting},
  volume = {3},
  number = {3},
  pages = {42-49},
  doi = {10.11648/j.jfa.20150303.12},
  url = {https://doi.org/10.11648/j.jfa.20150303.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20150303.12},
  abstract = {The purpose of this paper is to explore the perceptions of Tunisian financial analysts regarding factors influencing auditor independence. Our study examines the impact of 49 independence enhancing and threatening factors on the perceptions of 54 financial analysts using a questionnaire instrument. The results indicate that the principal threat factors relate to non audit services provision by the incumbent auditor and the existence of personal and financial relationships. The principal enhancement factor is the positive reputation. Exploratory factor analysis reduces the factors to a small number of dimensions. The most important dimension identified is the economic dependence and existence of personal and financial relationships.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts
AU  - Omri Mohamed Ali
AU  - Akrimi Nesrine
Y1  - 2015/05/09
PY  - 2015
N1  - https://doi.org/10.11648/j.jfa.20150303.12
DO  - 10.11648/j.jfa.20150303.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 42
EP  - 49
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20150303.12
AB  - The purpose of this paper is to explore the perceptions of Tunisian financial analysts regarding factors influencing auditor independence. Our study examines the impact of 49 independence enhancing and threatening factors on the perceptions of 54 financial analysts using a questionnaire instrument. The results indicate that the principal threat factors relate to non audit services provision by the incumbent auditor and the existence of personal and financial relationships. The principal enhancement factor is the positive reputation. Exploratory factor analysis reduces the factors to a small number of dimensions. The most important dimension identified is the economic dependence and existence of personal and financial relationships.
VL  - 3
IS  - 3
ER  -

Copy | Download