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Independence in Appearance of the CPAs Expected in the Market-oriented Economy

Research Project

Project/Area Number 10630134
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeSingle-year Grants
Section一般
Research Field Accounting
Research InstitutionSenshu University

Principal Investigator

TOBA Yoshihide  Senshu University School of Commerce, Professor, 商学部, 教授 (90106089)

Co-Investigator(Kenkyū-buntansha) KAWAKITA Hiroshi  Toua University Graduate School of Law, Professor, 大学院・法学研究科, 教授 (40268694)
HATTA Shinji  Surugadai University School of Economics, Professor, 経済学部, 教授 (60228484)
TAKADA Toshifumi  Touhoku University School of Economics, Professor, 経済学部, 教授 (40125787)
AKIZUKI Shinzi  Saitama University School of Commerce, Associate Professor, 経済学部, 助教授 (20134330)
OHNO Kouichi  Kantougaguin University School of Economics, Professor, 経済学部, 教授 (30121049)
Project Period (FY) 1998 – 1999
Project Status Completed (Fiscal Year 1999)
Budget Amount *help
¥4,000,000 (Direct Cost: ¥4,000,000)
Fiscal Year 1999: ¥700,000 (Direct Cost: ¥700,000)
Fiscal Year 1998: ¥3,300,000 (Direct Cost: ¥3,300,000)
Keywordsauditor' independence / independence in appearance / auditor / firmness of accounting standards / MAS services / self-regulation of the accounting profession / golden-parachuting from regulatory agencies / JICPA
Research Abstract

The purpose of our research entitled "An Empirical Study of the CPAs' independence perceived by the financial community" is to identify crucial factors which are expected to influence the auditors' independence perceived by the financial community. For that purpose, the study group presented an operational definition of the independence in appearance as the degree to which independent auditors are free from any factors which may cause the interested persons to believe that the auditors are not independent in fact and/or that they are subject to the pressure or intervention by management of the company under audit.
We tentatively identified 13 potential factors such as professional ability, sincerity and strong will, systematic audit process within the audit firm, rotation of partners and staff in charge within the audit firm, self-regulation of the JICPA, rotation of auditors, "gyosei-shido" by the regulatory agency, proceedings by the regulatory agency, golden parachuting from the regu … More latory agency, firmness and effectiveness of accounting standards, influence by tax regulations over accounting standards, the status as a social norm of accounting standards in Japan, competition among audit firms, and involvement with MAS services. These factors are categorized into three groups; personal/organizational factors, environmental/institutional factors, and CPA services factors.
13,301 questionnaires were mailed to executive officers, statutory auditors, accounting and financial manager, internal auditors (head), business journalists, accounting professors, management professors, commercial law professors, Certified tax experts, financial analysts, and securities market people. 5,034 responses were received (38%). As the result of the multivariate regression analysis with the significance level of 5%, it is shown that major independence-influencing factors which the respondents have recognized are "sincerity and strong will," "self-regulation of the JICPA, " "the status as a social norm of accounting standards in Japan, " "systematic audit process within audit firms. " Less

Report

(3 results)
  • 1999 Annual Research Report   Final Research Report Summary
  • 1998 Annual Research Report

URL: 

Published: 1998-04-01   Modified: 2016-04-21  

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