Regulatory responses to auditor independence dilemmas – who takes the stronger line?

Chapple, Larelle June & Koh, B (2007) Regulatory responses to auditor independence dilemmas – who takes the stronger line? Australian Journal of Corporate Law, 21(1), pp. 1-21.

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A key part of corporate governance reforms in Australia, as represented by CLERP 9, addresses concerns over the audit function and the role of independent auditors in monitoring managers and providing useful information to stakeholders about the financial position of the company. In comparing the regulatory responses to auditor independence dilemmas, there have been claims that CLERP 9 is less ‘stringent’ than the reforms imposed by the Sarbanes Oxley Act in the US. This paper looks at three particular situations that have been the subject of recent reform to strengthen independence: the mandatory rotation of auditors, recruitment of former auditors as board members, and provision of non-audit services to clients. In each case, we compare the similarities and differences of the regulatory response between Australia and US, to distil the efficacy of the CLERP 9 approach.

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ID Code: 50811
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: corporate governance reforms, auditor independence dilemmas, mandatory rotation of auditors
ISSN: 1037-4124
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2007 LexisNexis
Deposited On: 08 Jun 2012 00:16
Last Modified: 28 Jun 2017 14:43

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