The Role of Auditor Independence in Enhancing Stakeholder Confidence and Reducing Financial Misreporting

Posted: Jan 01, 2023

• Noel Harper
• Amara Benson
• Owen Craig

Abstract

The integrity of financial reporting systems represents a cornerstone of modern capital markets, with auditor independence serving as a critical safeguard against financial misreporting. Traditional accounting research has extensively documented the importance of auditor independence through empirical studies and regulatory analyses, yet these approaches often fail to capture the complex, dynamic interactions between independence mechanisms, stakeholder perceptions, and reporting outcomes. This research introduces a novel computational framework that transcends conventional methodological boundaries by integrating artificial intelligence, behavioral economics, and complex systems theory to examine auditor independence from a multidimensional, dynamic perspective.