Impact of auditor independence, expertise, and industry experience on financial reporting quality

IF 5.5 Q1 MANAGEMENT

Asia Pacific Management Review Pub Date : 2025-03-01 DOI:10.1016/j.apmrv.2025.100357

Chadia Sawaya, Nada Jabbour Al Maalouf, Raed Hanoun, Mabelle Rakwi

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Abstract

This study examines the impact of auditor independence, auditor expertise, and auditor industry experience on financial reporting quality. A quantitative method was employed and a survey was sent to a sample of 203 auditors. The findings revealed a significant positive relationship between auditor independence and financial reporting quality. This suggests that when auditors maintain independence and objectivity in their engagements, the accuracy and reliability of financial reporting are enhanced. Furthermore, the findings revealed that the expertise of auditors plays a vital role in ensuring compliance with accounting standards and ethical principles, thereby improving the quality of financial reporting. Additionally, the findings showed that auditors with industry-specific knowledge and expertise are better equipped to understand the unique challenges and opportunities within different sectors, leading to better financial reporting quality. This study is significant, as it contributes to the auditing literature by providing insights into the context of Lebanon, a nation grappling with economic and governance challenges, and underscores the pivotal role of auditors in upholding financial integrity in such turbulent environments.

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审计师独立性、专业知识和行业经验对财务报告质量的影响

本研究考察了审计师独立性、审计师专业知识和审计师行业经验对财务报告质量的影响。采用定量方法，对203名抽样审计员进行了调查。研究结果显示，审计师独立性与财务报告质量之间存在显著的正相关关系。这表明，当审计师在其业务中保持独立性和客观性时，财务报告的准确性和可靠性就会得到提高。此外，调查结果显示，审计人员的专业知识在确保遵守会计准则和道德原则方面发挥着至关重要的作用，从而提高财务报告的质量。此外，调查结果显示，拥有行业特定知识和专业知识的审计师更能理解不同行业的独特挑战和机遇，从而提高财务报告质量。这项研究具有重要意义，因为它通过提供对黎巴嫩背景的见解，为审计文献做出了贡献，黎巴嫩是一个努力应对经济和治理挑战的国家，并强调了审计师在这种动荡环境中维护财务诚信的关键作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asia Pacific Management Review MANAGEMENT-

CiteScore

8.00

自引率

4.50%

发文量

期刊介绍： Asia Pacific Management Review (APMR), peer-reviewed and published quarterly, pursues to publish original and high quality research articles and notes that contribute to build empirical and theoretical understanding for concerning strategy and management aspects in business and activities. Meanwhile, we also seek to publish short communications and opinions addressing issues of current concern to managers in regards to within and between the Asia-Pacific region. The covered domains but not limited to, such as accounting, finance, marketing, decision analysis and operation management, human resource management, information management, international business management, logistic and supply chain management, quantitative and research methods, strategic and business management, and tourism management, are suitable for publication in the APMR.