The Effect of Gifts, Discounts, and Client Size on Perceived Auditor Independence.

Kurt Pany; Philip M. J. Reckers

doi:10.2308/tar-4511361

The Accounting Review Vol. 55 No. 1 1980

The Effect of Gifts, Discounts, and Client Size on Perceived Auditor Independence.

Kurt Pany¹; Philip M. J. Reckers²

¹ Assistant Professor of Accounting, Arizona State University 1 · ² Assistant Professor of Accounting, University of Maryland, College Park 2

Abstract

The American Institute of Certified Public Accountants has indicated that auditor independence, both actual and perceived, is necessary to maximize the benefit of auditor association. This paper reports the results of a study of stockholder perceptions of the effect of relative client size, gifts, and purchase discount arrangements on auditor independence. The findings indicate that gifts and discount arrangements of even a minimal amount significantly affected users' perceptions of auditor independence. The effect of client size was not significant.

DOI: 10.2308/tar-4511361
Volume: 55
Issue: 1
Pages: 50-61
Language: en
Sources: openalex crossref

The Effect of Gifts, Discounts, and Client Size on Perceived Auditor Independence.

Abstract

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