A Scale of Perceived Independence: New Evidence on an Old Concept Available to Purchase

Reports the results of research on the topic of perceived auditor independence. Consistent with generally accepted auditing standards,independence is defined as the absence of bias in audit decision making. As a characteristic of individual auditors, independence is theorized as having a continuum of values. A mail survey was distributed to random samples of bankers and CPAs. Responses were received from 143 CPAs and 100 bankers. Results indicate that a continuum of independence exists;that there are significant differences in the perceptions of independence between bankers and CPAs in nine of the ten situations presented; and a respondent′s knowledge of accounting had no significant effect on evaluations of auditor independence. Discusses implications for ethical and regulatory controls on CPAs and presents future research opportunities.