Auditor independence: dilemmas and regulations

Author:University Lecturer, Ph. D. Daniela CIOLPAN

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Keywords:independence, Sarbanes- Oxley Act, conflict of interest, services provided by the audit firms, partners rotation, audit committee, supplementary reporting

Abstract:
Auditor independence has always been a controversial subject, both for the professionals in the area and for the public at large. We dedicated this study to present the new regulations in the area of auditor independence, the advantages and costs of the new regulations and the extent in which these regulations contribute to the real independence of the auditor or only to the perception of being independent. Starting with the premises that, after the period of time when the financial standards dominated the American market at the beginning of this century, the American’s efforts in the are of the financial – accounting regulations and of the audit practices increased and we have no doubts that will become a starting point for the international regulators. Consequently, our study discussed the North American practices and regulations.

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