Enhancing Auditor Independence in Developing Countries in Context of Globalization – Evidence in Vietnam

Abstract

Purpose: Globalization brings many opportunities and challenges for developing countries. So, does globalization create a motivation to improve the auditing profession's ethics? Independence is one of the most important components of auditing professional ethics, which must be maintained throughout the audit process. This article delivers a full insight into identifying factors that enhance the auditor independence promoted in the international integration process. Design/methodology/approach: This article approached from international integration process that affect auditor independence from auditors’ awareness, working environment and professional association. This article used a mixed approach based on the experimental methodology. This article used the archival research method and group discussions method to analyze and assess the research problems and verified by experimental data. The article took the group discussions with experts and survey 280 directors, auditors, auditor assistants who are working in 70 auditing firms. Findings: The results showed that globalization support auditors, audit firms, and professional Association to improve auditor independence. Especially, the factors that enhance the auditor independence driven by international integration: Knowledge, Technology, Competition, Management, Monitoring. Practical implications: The article implied to improve auditor independence in the context that Vietnam is strongly integrating internationally. Originality/value: The article has taken a new approach on auditor independence from globalization in Vietnam.

Keywords: Ethics, Auditor independence, International integration, Audit, Professional ethics.

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How to Cite
Duc, L. D. M. (2021, November 16). Enhancing Auditor Independence in Developing Countries in Context of Globalization – Evidence in Vietnam. Journal of Accounting, Business and Finance Research, 13(2), 37-48. https://doi.org/https://doi.org/10.20448/2002.132.37.48
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