Independence and Audit Quality in the Auditing
Abstract
After the severity of global economic downturn in 1997, all business sectors have closely paid attention toward a concept of corporate governance. This emphasizes on the importance of effective 1) internal auditor, 2) external auditor and 3) audit committee. This based on the belief which is stated that many firms went bankrupt is because of corruption and none transparency in the operating firm. Thus, many firms are interested in studying about the auditor: role and audit work. They have studied various strategies for each level of auditor in order to bring it in a control of administration. This should bring transparency and warning signals to the executives a head of time whether in financial, operating status and what lies a head.
The purpose of this article is to present a research of independence and audit quality in the auditing include; a mandatory auditor rotation, auditor rotation, auditor rotation in difference office, effects from the measure changes the auditor of Sarbanes-Oxley Act, audit quality and audit tenure, and Materiality in brief. On the other hand, suggestions for the future research on the studies of the role of the auditor toward capital markets are provided for any audit scholars.
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