Do We Need to Consider the Individual Auditor when Discussing Auditor Independence?

Abstract

Casual observation indicates that partners in accounting firms occasionally select actions which expose their firms to great risk. A model illustrates conditions when a partner may have incentive to associate with a client whose expected value to the accounting firm is negative. The potential for this apparent goal incongruence exists when a partner′s benefits from a specific client exceed his/her ownership share of the engagement′s profits.

Citation

Miller, T. (1992), "Do We Need to Consider the Individual Auditor when Discussing Auditor Independence?", Accounting, Auditing & Accountability Journal, Vol. 5 No. 2. https://doi.org/10.1108/09513579210011871