Addressing the auditor independence puzzle: Regulatory models and proposal for reform

• Main Authors: GELTER, Martin, GURREA-MARTINEZ, Aurelio
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Auditing; Accounting; Big 4; Enron; Sarbanes-Oxley; EU audit directive; EU audit regulation; Gatekeepers; Quasi-rents; Auditor rotation; Non-audit services; Majority-of-the-minority approval; Auditor compensation; Transparency reports; Audit firm governance; Accounting Law; Commercial Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/3253; https://ink.library.smu.edu.sg/context/sol_research/article/5214/viewcontent/Gelter_and_Gurrea._Auditor_independence_puzzle.pdf
• Institution: Singapore Management University

Auditors play a major role in corporate governance and capital markets. Ex ante, auditors facilitate firms’ access to finance by fostering trust among public investors. Ex post, auditors can prevent misbehavior and financial fraud by corporate insiders. In order to fulfill these goals, however, in a...