Secrecy culture, client importance, and auditor reporting behavior: an international study
Brian M. Lam,
Phyllis Lai Lan Mo,
Md Jahidur Rahman
Abstract:Purpose
This study aims to investigate whether auditors compromise their independence for economically important clients in countries with a secrecy culture.
Design/methodology/approach
The authors empirically examine the research question based on a data set of 33 countries for the period from 1995 to 2018. The dependent variable is the auditors’ propensity to issue modified audit opinions, which is a proxy for auditor independence. The authors use relative client size as a proxy for client importance. The … Show more
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