Research on the Conceptual Controversies Regarding Independence in Financial Audit

Author:Univ. Prof. Eugeniu ŢURLEA, Ph. D., Mihaela MOCANU, Ph. D. Student

JEL:M42, L84

DOI:

Keywords:independence, concept, controversies, financial audit

Abstract:
The concept of independence in financial audit has been an intensively debated topic from the starts of the audit profession till recent times. The present paper aims at clarifying some essential aspects with regard to this concept. First of all, the research clearly delimits independence from other related concepts such as impartiality, objectivity, unbiasedness and integrity. Second of all, the possible levels for conceptualizing independence are set: the profession level, the audit company level, the level of regional profit centers or audit offices of the same bigger company, the level of individual professional. Moreover, the line between organizational and operational independence is drawn. Third of all, the main conceptual perspectives on independence are presented, which subsequently are critically analyzed. The conclusion of the authors is that independence is an umbrella-concept, which needs to be investigated at all identified levels and which is best defined (from a practical point of view) as lack of dependence. \r\n \r\n\r\n

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