Exploring auditor independence: an interpretive approach

Hudaib, M. and Haniffa, R. (2009) Exploring auditor independence: an interpretive approach. Accounting, Auditing and Accountability Journal, 22(2), pp. 221-246. (doi: 10.1108/09513570910933951)

Abstract

<b>Purpose:</b>The purpose of this paper is to explore the construction of the meanings of auditor independence (AI) in an oil-rich autocratic state with an ideology straddling liberal market capitalism and Shari'ah (Islamic teachings). <b>Design/methodology/approach:</b>The concept of AI was explored using Blumer's interactionist approach or the Chicago School of Symbolic Interactionism (CSSI). Multiple methods were adopted in collecting and interpreting data: document analysis, personal professional experience, observation and interviews with auditors in two audit firms in Saudi Arabia. <b>Findings:</b>Using discourse analysis, the paper demonstrates that auditors construct the meanings of independence in appearance and in fact through their social interactions at three levels: micro (personal self-reflexivity through ethical reasoning and reputation of individual auditor); meso (organisational culture through range of commercial activities and image management) and macro (through political, de jure, and socio-economic structure). <b>Originality/value:</b>The paper contributes to the auditing literature by providing insights into the construction of the meaning of AI in a context different from the dominant Anglo-American discourse, as well as transition and emerging economies discourse. The paper also contributes to the CSSI research methodology by extending it to consider interactions not only within an organisational context, but also within the context of a country.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Haniffa, Prof Roszaini and Hudaib, Dr Mohammad
• Authors: Hudaib, M., and Haniffa, R.
• College/School: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Journal Name: Accounting, Auditing and Accountability Journal
• Publisher: Emerald Group Publishing Limited
• ISSN: 0951-3574