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Why an auditor can't be competent and independent: A french case study

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  • Chrystelle Richard

Abstract

This research proposes an understanding of the role of the relationship between the finance director and the auditor in the audit process and its effect on audit quality. We adopt an interpretative and qualitative approach. Based on 60 interviews, this qualitative method is the object of an interpretative process, composed of two complementary theoretical fields: contractual economic theories and economic sociology. Two notions emerge from this process, which are considered as the interpretation bases: relationship dualism (professional/personal relationship) and hybrid trust. This interpretative conception leads to a redefinition of the relationship between a finance director and an auditor as a peers' relationship. The emergence conditions of a peers' relationship are the sharing of professional and cultural norms, the frequency of relationship and the multiplexity of relationship. A peers' relationship is characterised by a hybrid trust, a joint generation of knowledge and a role equality. This parity conception of a relationship leads to a new reading of the foundations of audit quality that are auditor independence and competence. Audit quality appears as a balance between its two determinants, competence and independence.

Suggested Citation

  • Chrystelle Richard, 2006. "Why an auditor can't be competent and independent: A french case study," European Accounting Review, Taylor & Francis Journals, vol. 15(2), pages 153-179.
    • Handle: RePEc:taf:euract:v:15:y:2006:i:2:p:153-179
    DOI: 10.1080/09638180500104832
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    References listed on IDEAS

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    1. Frédéric Wacheux, 1996. "Méthodes qualitatives de recherches en gestion," Post-Print hal-00157140, HAL.
    2. repec:dau:papers:123456789/3659 is not listed on IDEAS
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    Cited by:

    1. Laurence Daoust & Bertrand Malsch, 2020. "When the Client Is A Former Auditor: Auditees' Expert Knowledge and Social Capital as Threats to Staff Auditors' Operational Independence†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1333-1369, September.
    2. repec:mth:ijafr8:v:9:y:2019:i:1:p:51-73 is not listed on IDEAS
    3. Knechel, W. Robert & Thomas, Edward & Driskill, Matthew, 2020. "Understanding financial auditing from a service perspective," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    4. Jean-Noël Chauvey & Maxime José Chanhoun & Sena John Ahyee, 2017. "Quality of public organization auditing arrangement and control in Benin [Qualité de l'audit comptable et financier et du contrôle des structures publiques du Bénin]," Post-Print hal-01907571, HAL.
    5. Lambert Jerman & Julien Raone, 2014. "Dompter La Verite Dans L'Organisation : La Subjectivation Comme Production De L'Animal Confessant," Post-Print hal-01899765, HAL.
    6. Dusica STEVCEVSKA SRBINOSKA, 2022. "Audit modifications in emerging markets: The Macedonian Stock Exchange," Romanian Journal of Economics, Institute of National Economy, vol. 55(2(64)), pages 43-69, December.
    7. Geneviève Causse & Viet Ha Vu, 2010. "La performance des cabinets d'audit légal : comparaison de points de vue," Post-Print hal-00479509, HAL.
    8. Sophie Audousset-Coulier, 2009. "L'utilisation des honoraires d'audit pour mesurer la qualité de l'audit : théorie et évidence," Post-Print halshs-00460230, HAL.
    9. repec:dau:papers:123456789/13554 is not listed on IDEAS
    10. repec:dau:papers:123456789/3505 is not listed on IDEAS
    11. Espinosa Díaz, Yuli Samary & Revelo Mantilla, Jessica Tatiana & Ballesteros Sarabia, Victor Manuel, 2020. "Nociones del escepticismo profesional del Contador Público en ejercicio de las auditorías: una perspectiva teórica," Revista Tendencias, Universidad de Narino, vol. 21(2), pages 266-282, July.
    12. Kohler, Hervé & Pochet, Christine & Gendron, Yves, 2021. "Networks of interpretation: An ethnography of the quest for IFRS consistency in a global accounting firm," Accounting, Organizations and Society, Elsevier, vol. 95(C).
    13. Patrick Ifergan, 2011. "Interprétativisme et complexité des normes d'audit françaises," Post-Print hal-00650464, HAL.
    14. Lambert Jerman & Alaric Bourgoin, 2016. "L'identité négative de l'auditeur," Post-Print hal-01902594, HAL.
    15. repec:dau:papers:123456789/7609 is not listed on IDEAS
    16. Emna Ben Saad & Cédric Lesage, 2009. "Perception De L'Indépendance De L'Auditeur : Analyse Par La Théorie D'Attribution," Post-Print halshs-00460618, HAL.
    17. Christine Noël Le maitre & Cathy Krohmer, 2010. "L’éthique est-elle (vraiment) une compétence clef des auditeurs légaux?," Revue Finance Contrôle Stratégie, revues.org, vol. 13(4), pages 75-100., December.
    18. Philip Law, 2008. "An empirical comparison of non-Big 4 and Big 4 auditors' perceptions of auditor independence," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(9), pages 917-934, October.
    19. González-Díaz, Belén & García-Fernández, Roberto & López-Díaz, Antonio, 2015. "Auditor tenure and audit quality in Spanish state-owned foundations," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(2), pages 115-126.
    20. Alice Garcia & Olivier Herrbach, 2010. "Organisational commitment, role tension and affective states in audit firms," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(3), pages 226-239, March.
    21. Jérémy Eydieux & Stéphanie Tillement & Benoît Journé, 2020. "A pragmatist approach to audit practices: two cases of technical dialog from nuclear risk governance in France," Post-Print halshs-03721410, HAL.
    22. Kym Butcher & Graeme Harrison & Jill McKinnon & Philip Ross, 2011. "Auditor appointment in compulsory audit tendering," Accounting Research Journal, Emerald Group Publishing Limited, vol. 24(2), pages 104-149, September.
    23. Fabien Cerruti & Christelle Richard, 2008. "Qualité de l'audit et Satisfaction de l'audité : Chronique d'une Innovation Ordinaire," Post-Print halshs-00522438, HAL.

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