Title: Auditor independence and corporate governance: ethical dilemmas

Authors: Waymond Rodgers, Andres Guiral, Jose A. Gonzalo

Addresses: A. Gary Anderson Graduate School of Management, University of California, Riverside, CA, 92521, USA. ' Facultad de CC.EE y Empresariales, University of Alcala, Plaza de la Victoria 2, Alcala de Henares 28802, Madrid, Spain. ' Facultad de CC.EE y Empresariales, University of Alcala, Plaza de la Victoria 2, Alcala de Henares 28802, Madrid, Spain

Abstract: Auditors| primary function in society is as purveyors of opinions for reliable and relevant information. Many company failures have highlighted whether auditors have a conflict of interest problem. At the root of auditors| lack of independence, issues are conflicts of interest resulting from the structural features of auditor–client relationship. The throughput model is advanced in order to explain how six dominant ethical positions deal with conflicts of interest problems and corporate governance issues. Finally, a discussion of potential solutions to improve ethical issues is offered for future research.

Keywords: auditing; conflict of interests; decision making; ethics; throughput model; warning signals; going concern opinion; auditor independence; corporate governance.

DOI: 10.1504/EJIM.2009.022634

European Journal of International Management, 2009 Vol.3 No.1, pp.60 - 74

Available online: 19 Jan 2009 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article