Bribery and perceived auditor independence

Résumé

This research attempts to narrow down the knowledge gap in literature
concerning bribery and its impact on auditor independence through
studying the gifts and benefits that given to auditor by his client.
Quantitative and qualitative methods in the form of questionnaire and
interviews are employed to examine the stakeholders’ perceptions namely
auditors, tax officers, bank loan officers, financial directors, and academics
toward auditor independence in the Yemeni environment. The questionnaire
and interview results indicate that the higher the value of gift or benefit, the
more threats there will be to auditor independence. These results appear
because gifts and benefits given to auditor create a close relationship
between the auditor and his client and influence the auditor’s conduct. The
interviewees agreed with the statement that any gift or benefit given to the
auditor in particular would undermine his independence. However, any gift
or benefit given to the public does not affect auditor’s independence, such
as advertising materials (pens, diary). This study is significant to lawmakers
and bodies of audit profession as it sheds an insight into the bribery and its
impact on the perceptions regarding auditor independence.
Keywords:Auditor independence, Bribery, Corruption, Yemen.
Jel Classification Codes: M42, D73