Factors Affecting Auditor Independence in Tunisia: The Perceptions of Financial Analysts

Abstract

The purpose of this paper is to explore the perceptions of Tunisian financial analysts regarding factors influencing auditor independence. Our study examines the impact of 49 independence enhancing and threatening factors on the perceptions of 54 financial analysts using a questionnaire instrument. The results indicate that the principal threat factors relate to non audit services provision by the incumbent auditor and the existence of personal and financial relationships. The principal enhancement factor is the positive reputation. Exploratory factor analysis reduces the factors to a small number of dimensions. The most important dimension identified is the economic dependence and existence of personal and financial relationships.