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)
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
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