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Exploring auditor independence: an interpretive approach

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  • Mohammad Hudaib
  • Roszaini Haniffa

Abstract

Purpose - The purpose of this paper is to explore the construction of the meanings of auditor independence (AI) in an oil‐rich autocratic state with an ideology straddling liberal market capitalism andShari'ah(Islamic teachings). Design/methodology/approach - The concept of AI was explored using Blumer's interactionist approach or the Chicago School of Symbolic Interactionism (CSSI). Multiple methods were adopted in collecting and interpreting data: document analysis, personal professional experience, observation and interviews with auditors in two audit firms in Saudi Arabia. Findings - Using discourse analysis, the paper demonstrates that auditors construct the meanings of independence in appearance and in fact through their social interactions at three levels: micro (personal self‐reflexivity through ethical reasoning and reputation of individual auditor); meso (organisational culture through range of commercial activities and image management) and macro (through political,de jure, and socio‐economic structure). Originality/value - The paper contributes to the auditing literature by providing insights into the construction of the meaning of AI in a context different from the dominant Anglo‐American discourse, as well as transition and emerging economies discourse. The paper also contributes to the CSSI research methodology by extending it to consider interactions not only within an organisational context, but also within the context of a country.

Suggested Citation

  • Mohammad Hudaib & Roszaini Haniffa, 2009. "Exploring auditor independence: an interpretive approach," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(2), pages 221-246, January.
    • Handle: RePEc:eme:aaajpp:v:22:y:2009:i:2:p:221-246
    DOI: 10.1108/09513570910933951
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    3. Sian, S. & Agrizzi, D. & Wright, T. & Alsalloom, A., 2020. "Negotiating constraints in international audit firms in Saudi Arabia: Exploring the interaction of gender, politics and religion," Accounting, Organizations and Society, Elsevier, vol. 84(C).
    4. Barone, Elisabetta & Ranamagar, Nathan & Solomon, Jill F., 2013. "A Habermasian model of stakeholder (non)engagement and corporate (ir)responsibility reporting," Accounting forum, Elsevier, vol. 37(3), pages 163-181.
    5. Achraf Haddad & Anis El Ammari & Abdelfettah Bouri, 2019. "Comparative Study of Ambiguity Resolution between the Efficiency of Conventional and Islamic Banks in a Stable Financial Context," International Journal of Economics and Financial Issues, Econjournals, vol. 9(5), pages 111-129.
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    7. Meuwissen, Roger & Quick, Reiner, 2019. "The effects of non-audit services on auditor independence: An experimental investigation of supervisory board members’ perceptions," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 36(C), pages 1-1.
    8. Shahzad Virk, Nader & Nawaz, Tasawar & Molyneux, Philip, 2022. "A canary in a Coalmine! religious agency and its impact on the performance of Islamic banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 78(C).

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