Business, Management and Accounting
4 years ago

Auditors' independence remains intact despite fee dependence, study finds.

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SSRN Electronic Journal
Auditor Independence and Fee Dependence
Allen Craswell, Donald J. Stokes, Janet Laughton

Paper Summary

The study looked at whether auditors' independence is affected by how much they rely on fees from the companies they audit. They found that the level of fee dependence does not impact auditors' decisions to issue unqualified audit opinions. This means that auditors are not influenced by the amount of money they receive from the companies they audit when making their judgments.

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