Purpose-The study investigates the perceptions of auditor independence (PAI) between auditors and users in Barbados. Design/methodology/approach-A self-administered questionnaire was adapted and modified from Beattie et al.'s study in the UK the sample included 66 auditors and 148 users. Factors relating to the size and closeness of Barbadian society, lengthy tenure and being a sole audit practitioner, small audit firm, provision of non-audit services (NAS) among others, were investigated. Findings-Economic dependence of auditor on the client, the provision of NAS, high competition, small firm size, being a sole practitioner, lengthy tenure and the size and closeness of Barbadian society were found to negatively affect PAI. Auditor independence was perceived to be enhanced by the existence of audit committees, rotation of audit partners, risks to auditor arising from poor quality, regulatory rights and requirements surrounding auditor change and an auditor's right to attend and be heard at the company's annual general meetings. Research limitations/implications-Owing to the relatively small sample size and small emerging market, these findings should be interpreted with caution. Practical implications-This research serves to inform audit related policies and regulation on the potential threats to auditor independence. Originality/value-This paper contributes to the limited body of research on auditor independence in small developing countries.
Purpose -The purpose of this paper is to explore perceptions of fraud detection techniques in the stock and warehouse cycle in Barbados. Design/methodology/approach -The study uses a self-administered questionnaire, adapted and modified from Owusu-Ansah et al. The sample is comprised of 64 auditors. The study examines the perceived effectiveness of audit procedures, the influence of size of the audit firm, and the level of audit experience in the choice of specific audit procedures. Findings -The study indicates that there is a moderate to high perceived effectiveness of standard audit procedures in the detection of fraud in the stock and warehousing cycle in Barbados and that the majority of the "more effective" audit procedures can be classified as field research techniques that are more direct in obtaining evidence. It is found that auditors from larger firms reported higher means for audit procedures. There are mixed findings with respect to the significant relationship between level of auditing experience of auditors and perceived effectiveness of fraud detection techniques. The study also indicates that males consistently rated the level of effectiveness of audit procedures higher than females.Research limitations/implications -Due to the relatively small sample size, these findings should be interpreted with caution. Nonetheless, the findings of this study do indicate that auditing procedures in this developing country are on par with those of developed countries. Practical implications -This paper serves to inform audit-related policies and regulation on the potential threats within the stock and warehouse cycle. Originality/value -This paper contributes to the limited body of research on fraud detection within the stock and warehouse cycle in small developing countries.
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