Impact of CLERP 9 Reforms: A Longitudinal Analysis

Rounds of corporate collapse linked to failure of transparency in reporting frequently result in governance reforms aimed at audit processes. The 2004 CLERP 9 reforms in Australia were intended to improve standards of auditor independence and thereby enhance auditing practice in general. This study longitudinally examines three sources of archival evidence in an Australian context, before and after the introduction of the CLERP 9 reforms. It finds little support for any success of the CLERP 9 reforms with respect to auditor independence and questions whether lack of auditor independence is in fact a significant causation factor in audit failure.