Journal of Accounting and Management Information Systems (JAMIS)

Independence in dilemma: flexibility of ethic reasoning vs. tightness of law

5/2003 ,   p13..22


Keywords:   independence, Sarbanes-Oxley act, auditor’s benefits, ethics

Auditor’s independence always constituted a controversial matter, both for professionals and the public. The objective of this article is to analyze new rules concerning auditor’s independence such as Sarbanes-Oxley act, the costs and benefits implied by these rules and the extent to which these rules contribute to insuring a genuine or fake independence of the auditor. We also analyze main services an auditor can provide in the context of auditor’s independence. We conclude that the larger extent to which auditors must explain the services they provide and fees they receive for will contribute to an increased efficiency and a reduced cost of the capital.